New York, Jan 11, 2026, 15:51 EST — Market closed
- Citi shares closed Friday roughly 0.6% higher, at $121.32.
- Starting Jan. 20, Trump proposed capping credit-card interest rates at 10% for one year.
- Citi will release its fourth-quarter earnings on Jan. 14, following inflation data set to drop a day before.
Shares of Citigroup Inc entered the new week following U.S. President Donald Trump’s call for a one-year cap on credit-card interest rates at 10%, accusing lenders of “ripping off” consumers. Citi’s stock closed Friday up roughly 0.6% at $121.32. 1
Timing is key. A hard cap could squeeze interest income for card lenders right as investors shift focus from macroeconomic chatter to bank earnings, with Citi standing out as a major player. The bank plans to release its fourth-quarter results around 8 a.m. ET Wednesday, followed by a webcast and call at 11 a.m. ET. 2
Bank stocks are priced for strong earnings, with investors banking on capital-markets revenue holding steady late last year. Barron’s notes that Citigroup is now trading at its highest valuation since 2008. 3
A 10% cap would be well below the rates most cardholders currently face. Barron’s reported the average credit-card rate at about 19.65%, noting that a 10% limit would mark the lowest level since at least 1994. Companies with significant card exposure—JPMorgan Chase, Capital One, and American Express—are also in the spotlight. 4
Information remains limited, complicating matters for traders. According to The Washington Post, major banks have warned that imposing a cap might restrict credit availability. Hedge fund manager Bill Ackman called the move a “mistake,” warning it could lead to card cancellations among higher-risk borrowers.
Rates are another key factor. Friday’s U.S. jobs report revealed unemployment dropped to 4.4%, while annual wage growth climbed to 3.8%. This bolsters the view that the Federal Reserve will hold rates steady at its Jan. 27-28 meeting. “All roads lead to the unemployment rate … it should douse the Fed’s recent urgency to backstop a weakening labor market,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. 5
Investors will digest fresh inflation figures before Citi posts its results. The Labor Department’s CPI report for December 2025 drops Tuesday at 8:30 a.m. ET. This release often moves Treasury yields and, consequently, bank stock values. 6
Citi’s report will have investors zeroing in on card credit trends and any shifts in the bank’s assessment of consumer stress. They’ll also scrutinize net interest income — the gap between earnings on loans and costs of funding — plus expense control and any signals on capital returns.
But outcomes vary widely. The card-rate cap might end up as little more than political posturing, or it could gain traction, pushing lenders to tighten credit, raise fees, or cut back on lines for riskier borrowers. On another front, a hotter CPI figure or a cautious earnings forecast could weigh on stocks that have already seen gains.
Citi traders are zeroing in on Tuesday’s inflation report and Wednesday’s earnings call as the next major triggers. Any clear signals from Washington on card rates before Jan. 20 could drive the market’s next shift.
