Former President Donald Trump declared on January 11, 2026, that credit card companies would violate federal law if they fail to cap interest rates, prompting immediate market reaction across major financial institutions. The remarks, made aboard Air Force One, spotlight potential regulatory shifts affecting the consumer credit sector.
- Trump claims current credit card interest rates violate federal law if not capped.
- Average U.S. credit card APR reached 26.7% in late 2025, with some cards exceeding 30%.
- Major issuers targeted include V, MA, JPM, C, BAC, and DIS.
- Stocks in the group saw declines of up to 2.1% following the remarks.
- Credit card-related asset-backed securities saw yield spreads widen by 8 basis points.
- Regulatory risk may force financial institutions to revise profitability assumptions.
Former President Donald Trump asserted during a press briefing on January 11, 2026, that credit card issuers operating under current interest rate structures would be in breach of federal law unless rates are capped. Speaking aboard Air Force One en route from Palm Beach to Washington, D.C., Trump emphasized that existing APRs—some exceeding 30%—are unsustainable and unjustifiable under existing consumer protection statutes. The statement directly implicates major credit card issuers, including Visa (V), Mastercard (MA), JPMorgan Chase (JPM), Citigroup (C), Bank of America (BAC), and Disney (DIS), which holds a significant stake in the consumer credit space through its credit card operations. Analysts note that the average credit card APR in the U.S. stood at 26.7% in late 2025, with some premium cards charging over 30%, raising concerns about predatory lending practices. Markets reacted swiftly, with V and MA stocks dipping 1.8% and 1.5% respectively in early trading, while JPM and BAC saw declines of 2.1% and 1.9%. The implied risk of stricter regulation has led investors to reassess profitability models, particularly those reliant on high-margin credit card portfolios. Fixed income markets also reflected concern, with spreads on consumer loan-backed securities widening by 8 basis points. The potential for federal intervention raises the stakes for financial institutions, which could face reduced earnings if rate caps are imposed. Industry groups have already begun mobilizing opposition, warning of reduced lending availability and higher fees for lower-risk borrowers. With Trump’s renewed focus on consumer finance, the likelihood of legislative or regulatory action in 2026 remains elevated.