Stock Track | American Express Plummets 5.29% as Trump Proposes 10% Cap on Credit Card Rates
Stock Track01-12 23:22
American Express (AXP) shares plummeted 5.29% intraday on Monday, following President Donald Trump's surprise call for a one-year cap on credit card interest rates at 10%. The proposal, announced via social media on Friday, has sparked fears of reduced profitability for credit card issuers.
Trump's plan, set to take effect on January 20, 2026, aims to ease financial burdens on consumers but could severely impact lenders like American Express. Analysts warn that such a cap would force issuers to tighten lending standards, potentially limiting credit availability and hurting revenue streams.
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