Jan. 10 at 2:06 AM
PickAlpha Weekend :
Trump said he wants a one-year cap on credit-card APR at 10%, effective Jan. 20, framing it as an affordability move - but he didn’t lay out the enforcement mechanism or legal path. The push lands as the White House leans harder into cost-of-living politics ahead of the midterms, and even Bernie Sanders jumped in to claim Trump hasn’t delivered on the idea before. Industry groups warn a hard cap could reduce access to card credit.
Tickers:
$AXP $COF $DFS
Our view is this is a regulatory headline risk trade until there’s a credible implementation route: the market will price (1) probability of a binding cap and (2) the “credit availability” second-order effect. If a real cap starts to look enforceable, it’s a direct hit to revolving yield economics (especially subprime-heavy), and lenders shift to fees/tighter underwriting; if it stays rhetorical, the move fades but the policy overhang raises the political risk premium into 2026.
