American Express CEO says a credit card rate cap wouldn't be good for the economy

Add different salient fiscal fig speaking retired against involvement complaint caps connected recognition cards.

"A 10% recognition paper cap, what you would spot is simply a simplification successful recognition cards crossed the United States," American Express (AXP) CEO Stephen Squeri told Yahoo Finance by telephone connected Friday. "A batch of radical would not beryllium getting recognition cards. You would spot [credit] enactment reductions. And listen, the American system runs connected credit, and truthful you would spot a tiny concern slowdown. It's not the close answer."

President Trump this period wrote connected Truth Social that involvement rates connected recognition cards should beryllium constricted to 10% for 1 year, starting Jan. 20. The day has travel and gone, with nary wide penetration into the Trump administration's adjacent move.

"It would beryllium an economical disaster, and I'm not making that up due to the fact that our concern … we would past it, by the way," JPMorgan CEO Jamie Dimon said astatine the World Economic Forum past week. Dimon added that the headdress would beryllium "drastic" and would chopped recognition entree for 80% of Americans.

Read more: What Trump’s 10% headdress connected involvement rates would mean for recognition cardholders

Wall Street agreed with Dimon.

"The gross gross accusation for paper lenders would beryllium a worldly antagonistic (pre offsets), nevertheless enforcing specified a headdress is apt a situation and has failed successful the past," Evercore ISI expert John Pancari wrote.

Amex is caller disconnected different coagulated twelvemonth nether Squeri's leadership. Full-year nett income roseate 10% to $72.2 billion. Adjusted net accrued 15%.

Shares are up 14% implicit the past year.

• Net sales: +10% twelvemonth implicit twelvemonth to $18.98 billion, vs. estimation of $18.93 billion

• Diluted EPS: +16% twelvemonth implicit twelvemonth to $3.53, vs. estimation of $3.53

• 2026 nett income guidance: +9% to +10% (estimate: +9%)

• 2026 diluted EPS guidance: $17.30 to $17.90 vs. estimation for $17.38

Brian Sozzi is Yahoo Finance's Executive Editor and a subordinate of Yahoo Finance's editorial enactment team. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email [email protected].

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