New York, Jan 22, 2026, 15:10 EST — Regular session.
- Citi shares gain as report flags a possible 10% interest credit card product
- Trump’s proposed one-year 10% cap keeps pressure on big banks’ card businesses
- Investors watch Washington next, with the Fed meeting Jan. 27-28 also in focus
Citigroup shares rose 1.4% to $115.43 in afternoon trading on Thursday after Bloomberg News reported the lender is weighing new credit cards charging 10% interest, a potential answer to President Donald Trump’s push for a one-year cap on card rates. Bank of America is considering similar cards, a source familiar with the matter said, while Citi declined to comment. Bank of America was up 0.8%, JPMorgan added 0.5% and Wells Fargo gained 2.6%, while the S&P 500 tracker SPY rose about 0.5%.
Credit cards throw off some of the fattest returns in U.S. banking, but they also put lenders on the political front line when household debt and living costs rise. Card balances are unsecured — there is no collateral — so banks charge high rates to cover the risk of default. A hard 10% cap would squeeze interest income and could push lenders to trim credit lines or strip out perks.
Trump said he is asking Congress to cap credit card interest rates at 10% for one year, putting a policy spotlight on a business banks lean on for interest income. JPMorgan CEO Jamie Dimon called the idea an “economic disaster” and said it would remove backup credit from 80% of Americans. Wall Street analysts have said any cap would require legislation and could end up as a compromise product — lower-rate cards with fewer rewards. Reuters
Citigroup’s Jane Fraser said she does not expect Congress to approve caps and warned they would cut access to credit for many U.S. customers. “The president is right in focusing on affordability,” Fraser said, adding: “But capping rates would not be good for the U.S. economy.” Fraser also said Citi does not plan another big headcount cut after starting about 1,000 layoffs. Reuters
Major banks have been talking with Trump administration officials and are waiting for clarity on policy before taking action, sources told Reuters. One way lenders could respond to a cap, the sources said, is by reducing credit lines to limit losses.
U.S. data on Thursday showed initial jobless claims rose to 200,000 and third-quarter growth was revised to a 4.4% annual rate, while consumer spending rose 0.5% in November after the same gain in October. “The Fed will postpone cuts until it sees evidence of easing inflationary pressures,” said Michael Gapen, chief economist at Morgan Stanley. Reuters
Citi analysts said Washington’s affordability push could steer investors toward fintech challengers offering lower-cost credit and small-business tools. The note pointed to firms such as Affirm, Klarna, SoFi, Block, Toast and Shopify.
Still, Citi’s bounce on Thursday rests on an assumption that the 10% cap stays a talking point or gets diluted in Congress. A tougher outcome could crimp card yields and force lenders to ration credit, even if they roll out cheaper cards for some customers.
Investors will watch for any draft bill or guidance from the White House on how a cap would be enforced — or whether banks get credit for voluntary changes. The Federal Reserve’s Jan. 27-28 meeting is the next fixed point on the calendar for rates-sensitive financial stocks.
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