Why Investors Shouldn't Panic Yet About Trump's Credit-Card Rate-Cap Proposal

Trump's Credit-Card Rate-Cap Proposal: What Investors Should Know

The proposal to cap credit-card APRs at 10% has sparked concerns among investors, but a Jefferies analyst believes it's unlikely to pass. According to a recent article on MarketWatch ^[1], the analyst thinks it's 'highly unlikely' that Trump gets his way.

What's at Stake

If the proposal were to pass, it could have a significant impact on credit-card companies' earnings. However, the analyst believes that the proposal is more of a negotiating tactic than a serious attempt to reform the credit-card industry.

Market Reaction

The market has been reacting to the proposal, with some investors expressing concerns about the potential impact on credit-card companies. However, others believe that the proposal is unlikely to pass and that investors shouldn't panic.

What's Next

The proposal is still in its early stages, and it's unclear what will happen next. However, investors should be aware of the potential impact on credit-card companies and be prepared for any changes that may come.

Sources

[1] Why investors shouldn’t panic yet about Trump’s credit-card rate-cap proposal