New York, Jan 22, 2026, 12:49 EST — Regular session
- Shares of Bank of America climbed roughly 2% in early afternoon trading, settling near $53. 1
- A report indicates Bank of America and Citigroup are considering new credit cards featuring a 10% interest-rate cap. 2
- Traders are focused on Capitol Hill and the Fed’s policy meeting scheduled for Jan. 27–28. 3
Shares of Bank of America climbed roughly 2% Thursday, pushing the stock to $53.09 by early afternoon. The move came after reports surfaced that the bank, along with Citigroup, is mulling new credit cards with interest rates capped at 10%. 4
Tensions over consumer-lending rules have been simmering for days, as the White House advocates a one-year cap of 10% on credit-card rates. Banks argue this could tighten access to unsecured credit. “For now, it’s an overhang, but that overhang could clear quickly,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management. 5
At the World Economic Forum in Davos, JPMorgan Chase CEO Jamie Dimon slammed the proposal as an “economic disaster,” warning it “would remove credit from 80% of Americans.” Speaking at the same event, Trump announced he’s urging Congress to impose a 10% cap on credit-card interest rates for one year. 6
Trump told CNBC he’s gotten calls from credit-card companies and urged them to “give people a break,” though he didn’t specify which firms. Banking groups have pushed back, while some Wall Street analysts note that any cap would need legislation and faces steep hurdles. 7
BAC climbed alongside a wider rally that’s helped keep Wall Street close to record highs, following Trump’s softened tariff stance on Europe and fresh data showing solid consumer spending. “It’s the TACO trade follow on from yesterday,” said Dustin Thackeray, head of portfolio management at Crewe Advisors. 8
Shares of other major banks also climbed. Citigroup advanced roughly 2.3%, Wells Fargo jumped around 3.3%, and JPMorgan increased by about 1.5%. The Financial Select Sector SPDR Fund meanwhile rose close to 1%.
Investors remain uncertain about the practical implications of the “10%” limit. Since credit cards are unsecured loans, issuers usually charge higher interest to offset default risks. A strict cap might force banks to tighten underwriting, reduce credit limits, or hike fees.
The bigger wildcard remains the policy route. Should Congress drag its feet or weaken the proposal, the rally in bank stocks may quickly unravel. But if a firm cap emerges, the blow to interest income might be more severe than the market currently anticipates.
Markets are awaiting clearer guidance from lawmakers on the potential cap’s design, while turning to the Federal Reserve’s Jan. 27–28 policy meeting for fresh insight on the interest rate outlook for lenders. 9
