New York, January 20, 2026, 15:51 EST — Regular session
- American Express (AXP) slipped 3.3% in late trading, staying close to the day’s low
- Washington ramps up pressure on card pricing as the Jan. 20 compliance deadline hits
- Attention now turns to AmEx’s Jan. 30 earnings and executive comments on credit trends and regulatory issues
American Express (AXP) shares dropped 3.3% to $352.84 in late New York trading Tuesday, brushing close to the session low. Investors reacted to the White House’s move to limit credit-card interest rates. The stock opened at $355.32 and swung between $351.40 and $361.14.
The effort focuses on capping the annual percentage rate (APR) — the main interest fee on balances that carry over each month. Setting a 10% limit would cut into lenders’ interest earnings, potentially leading to stricter credit conditions or reduced rewards.
U.S. Treasury Secretary Scott Bessent told CNBC at the World Economic Forum in Davos that it’s “not unreasonable” to open a discussion about credit card company practices. His remarks came after President Donald Trump proposed a one-year cap, following Democratic Senator Elizabeth Warren’s claim that Trump had contacted her about the plan. 1
The market remains uncertain about whether Trump’s Jan. 20 deadline to enforce a 10% cap “would take effect,” or if such a move requires legislation. Brian Jacobsen, chief economic strategist at Annex Wealth Management, called it “an overhang … (that) could clear quickly.” 2
The American Bankers Association’s analysis of issuer data indicates that between 137 million and 159 million cardholders could lose card access if a 10% interest rate cap is imposed. “This new data is clear: interest rate caps lead to fewer options, higher costs and reduced access,” said ABA President and CEO Rob Nichols. 3
Visa slipped 0.8%, while Mastercard dropped 1.5%, dragging the broader payments sector lower as investors grappled with which companies might suffer most from a rate ceiling.
Citigroup CEO Jane Fraser said she doubts Congress will approve limits on credit card interest rates, warning that “capping rates would not be good for the U.S. economy.” She added that such caps would reduce access to credit and hurt industries like airlines, retailers, and restaurants. 4
American Express signaled steady credit trends amid ongoing policy debates. In a filing dated Jan. 15, the company disclosed U.S. consumer card member loans totaling $100.2 billion as of Dec. 31. Its 30-day delinquency rate stood at 1.3%, while the net write-off rate on principal was 2.1%. 5
The next key date is earnings. American Express plans to release its fourth-quarter and full-year results on Friday, Jan. 30. The company said results will come out around 7:00 a.m. ET, followed by a conference call at 8:30 a.m. ET. 6
The downside is clear. Should the White House take a hard line, or if lawmakers succeed in imposing a cap, lenders might be forced to reprice cards, cut back on rewards, or tighten credit standards. A court battle could then extend the timeline in uncertain ways.
Traders are focused on what happens after the Jan. 20 deadline, trying to figure out if “cap” refers to policy, politics, or a voluntary deal. The next major event for AXP comes Jan. 30, when executives will be grilled on 2026 spending, credit quality, and how they’d manage the business with a 10% limit in place.
