President Donald Trump earlier in January issued an ultimatum to credit card companies in January, demanding that rates be lowered to 10% by January 20 or face severe consequences.
Trump’s Deadline
While the Jan. 20 deadline has long passed, the credit card rates have not been capped yet.
Sen. Elizabeth Warren (D-Mass.) on Monday published an op-ed on Fox News, criticizing Trump’s “broken promise on credit cards.”
Here’s What The Prediction Market Thinks
Data from Kalshi, a federally authorized betting platform, shows that over $225,000 has been bet on the contract “Will credit card rates be capped this year?”
The contract offers a deadline of Jan. 1, 2027. If credit card interest rates are capped before the date, it will resolve to “Yes”.
While “Yes” had higher support initially, bettors now predict the probability of credit card rates being capped at just 18%.
The probability that the credit card rates won’t be capped has surged to 84%.
Experts Warn Against Cap On Credit Card Rates
Trump’s proposal faced significant opposition. Economists and Republican leaders expressed concerns about the potential negative effects of such a cap.
Dave Grossman, founder of Your Best Credit Cards, warned that a cap could lead to reduced credit access and impact industries reliant on credit card rewards
Additionally, the CEO of Capital One Financial (NYSE:COF) warned that such a cap could trigger a recession, affecting $6 trillion in consumer spending.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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