New York, Jan 22, 2026, 11:21 (EST) — Regular session
- Shares of JPMorgan climbed roughly 1.2%, reaching $305.57 by late morning trading.
- Jamie Dimon’s sharp criticism of a proposed cap on credit-card rates has investors reassessing the political risks involved.
- New U.S. inflation and spending figures have fueled the rate discussion ahead of the Fed’s meeting next week.
Shares of JPMorgan Chase & Co (JPM.N) climbed roughly 1.2% to $305.57 on Thursday, following a broader rally among major U.S. banks. Bank of America rose around 1.4%, Citigroup edged up about 0.7%, and Wells Fargo jumped nearly 2.5%.
The bounce reflects investors grappling with fresh policy risk tied to credit cards, a major profit driver for big issuers. A proposed cap on interest rates for revolving card balances has quickly become a headline trade.
At the World Economic Forum in Davos, JPMorgan CEO Jamie Dimon slammed the proposal as an “economic disaster,” arguing it would strip credit access from 80% of Americans. Meanwhile, President Donald Trump announced he’s urging Congress to impose a one-year 10% cap on credit-card interest rates. Still, Brian Jacobsen, chief economic strategist at Annex Wealth Management, dismissed the chances of such a cap happening anytime soon as “highly unlikely.” (Reuters)
In a CNBC interview, Trump said credit-card companies had reached out to him. He urged the industry to “give people a break,” though he didn’t specify which firms or executives had called. (Reuters)
The broader market got a boost. Wall Street’s key indexes climbed after Trump eased his tariff stance on Europe, while investors worked through a batch of U.S. economic reports. The Dow rose roughly 0.5% in early trading. (Reuters)
The Commerce Department’s Bureau of Economic Analysis reported that consumer spending increased 0.5% in both October and November. The personal consumption expenditures (PCE) price index, the Fed’s favored inflation measure, rose 0.2% in November and was up 2.8% year-on-year. Core PCE, which excludes food and energy, also hit 2.8% annually. (Reuters)
For banks, the rate story is crucial since it directly impacts net interest income—the difference between loan earnings and deposit costs—and can influence loan demand. Credit trends also play a key role, particularly in unsecured areas such as credit cards.
The rate-cap debate introduces a distinct risk. It’s straightforward, makes for a simple campaign message, and becomes unpredictable if it gains momentum. Bank leaders and industry groups warn it could restrict credit access, shifting financial strain onto regular household spending.
But the market is pricing in odds, not slogans. Should the cap debate lose steam or hit a wall in Congress, focus will return to the economy and the Fed. If it picks up speed, bank stocks—especially those heavy in card portfolios—could adjust sharply.
Traders are now eyeing the Federal Reserve’s January 27–28 meeting closely, especially the policy statement and press conference set for January 28. At the same time, all eyes will be on Congress for any concrete moves on the credit-card cap proposal beyond just talk. (Federalreserve)
