Monetary Matters with Jack Farley Banks Under Fire From Executive Action | Jack & Max on Trump's Threatened 10% Credit Card Cap and How Executive Action Is Shaping Markets in Defense, Housing, Payments, Central Banking, and More
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Jan 14, 2026 Max Wiethe, a market commentator known for his trading insights, joins Jack to dive into President Trump's proposed 10% interest cap on credit cards, examining its genuine impact versus political theater. They explore potential bank strategies like teaser cards and the surprising bipartisan origins of the cap idea. The discussion broadens to include mortgage policies and housing market effects, alongside the risks banks face from rising subprime lenders and pawn shops if credit tightening occurs. Max also highlights implications for investment opportunities amidst market shifts.
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10% Card Cap Is More Political Than Practical
- A proposed 10% cap on credit card APRs shocked markets but is unlikely to be fully enacted or enforced.
- Jack Farley and Max Wiethe view it largely as a political midterms play with limited practical follow-through.
Who Would Actually Lose From A Rate Cap
- A 10% APR cap would hurt lenders that rely on high-rate unsecured credit like Capital One and Synchrony most.
- Visa and MasterCard could be less impaired because much revenue comes from international volumes and non-interest network fees.
Teaser Cards Could Neutralize The Cap
- Card issuers may respond with optics-first products like a low-rate 'teaser' Trump card that has strict approvals.
- That would let the administration claim victory while actual lending economics remain unchanged.
