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Add another prominent financial figure speaking out against interest rate caps on credit cards.
“A 10% credit card cap, what you would see is a reduction in credit cards across the United States,” American Express (AXP) CEO Stephen Squeri told Yahoo Finance by phone on Friday. “A lot of people would not be getting credit cards. You would see [credit] line reductions. And listen, the American economy runs on credit, and so you would see a small business slowdown. It’s not the right answer.”
President Trump this month wrote on Truth Social that interest rates on credit cards should be limited to 10% for one year, starting Jan. 20. The date has come and gone, with no clear insight into the Trump administration’s next move.
“It would be an economic disaster, and I’m not making that up because our business … we would survive it, by the way,” JPMorgan CEO Jamie Dimon said at the World Economic Forum last week. Dimon added that the cap would be “drastic” and would cut credit access for 80% of Americans.
Read more: What Trump’s 10% cap on interest rates would mean for credit cardholders
Wall Street agreed with Dimon.
“The gross revenue implication for card lenders would be a material negative (pre offsets), however enforcing such a cap is likely a challenge and has failed in the past,” Evercore ISI analyst John Pancari wrote.
Amex is fresh off another solid year under Squeri’s leadership. Full-year net sales rose 10% to $72.2 billion. Adjusted earnings increased 15%.
Shares are up 14% over the past year.
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Net sales: +10% year over year to $18.98 billion, vs. estimate of $18.93 billion
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Diluted EPS: +16% year over year to $3.53, vs. estimate of $3.53
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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