CNBC's "Fast Money" Credit Card Crunch… And Trump’s Powell Probe 1/12/26
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Jan 12, 2026 A dramatic proposal from Trump aims to cap credit card interest rates at 10%, shaking up big banks and sparking debates on market reactions. Meanwhile, a DOJ investigation into Fed Chair Jerome Powell raises concerns over Fed independence. There's talk of potential opportunities in bank stocks amidst a political sell-off, as well as insights on retail performance during the holidays. The episode also touches on Alibaba's advancements in AI and the upcoming JPMorgan healthcare conference.
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Credit Cap Shock Is Largely Political
- President Trump's 10% credit card rate cap proposal drove sharp sell-offs in card issuers but requires Congressional or regulatory action to become law.
- Traders view the drop as likely overdone and a potential buying opportunity given banks' upcoming earnings and strong fundamentals.
Cap Would Crimp Card Economics
- A severe 10% cap would reduce revolving balances and shrink card lenders' core profitability, causing lower lending availability.
- Panelists expect unintended credit rationing and see the measure as politically potent but practically hard to implement.
Buy The Political Dip In Banks
- Treat the sell-off as a buying opportunity because executive action alone can't force banks to 10% rates and legislative change would take time.
- Focus on credit card specialists as more exposed while big commercial banks have diversified portfolios.