By Xavier Martinez
Wall Street isn't pleased with President Trump's proposed 10% credit-card interest rate cap. Analysts on Monday warned that it could backfire by sidelining the low-income consumers the policy aims to protect while potentially devastating parts of the financial services sector.
The proposed cap would likely force lenders to eliminate subprime credit accounts entirely to mitigate risk, Truist analysts wrote, erasing approximately $250 billion in balances-roughly 20% of the entire credit-card industry. The analysts warned that some customers with higher credit scores could see their access to credit revoked.
This proposal arrives as the economy is at a crossroads. While the market proved resilient through 2025, it remains vulnerable to stubborn inflation and a cooling labor market. Consumer spending slowed late last year, according to J.P. Morgan analysts, and was more dependent on high-income households while lower earners began to pull back.
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(END) Dow Jones Newswires
January 12, 2026 15:00 ET (20:00 GMT)
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