It's no secret that interest rates on credit cards can get steep... The average interest rate for credit cards stayed around 20% last year. But that was far from the worst...

A Government 'Fix' Could Turn This Industry Upside Down By Ethan Goldman, junior analyst, Chaikin Analytics It's no secret that interest rates on credit cards can get steep... The average interest rate for credit cards stayed around 20% last year. But that was far from the worst... Retail credit cards saw average interest rates of more than 30%. That's the second highest for store cards since 2008. Of course, this makes retail credit cards much less attractive for consumers. Customers who would normally use store cards are making a switch to other credit cards and buy now, pay later loans. The good news is that delinquency rates for consumer cards are still historically low. Meanwhile, we're hearing more talk from politicians about doing something for folks struggling with credit-card debt... As you've likely heard by now, President Donald Trump says he wants a limit on credit-card rates. On January 9, in a post on his Truth Social platform, he called for a one-year cap of 10%. As you can imagine, credit-card companies weren't too thrilled to hear this news. Interest payments are a major source of income for these businesses. A day after Trump's announcement, the American Financial Services Association ("AFSA") published a letter saying that these caps may just make things worse. Folks, we don't know how this is going to play out. As you know, Trump often makes big calls like this that gain a ton of attention. But the end result doesn't always turn out as he might initially suggest. Either way, it's a warning sign for credit-card companies if the government is angling to hit their income streams... Recommended Links: Starting Soon: Announcing a New Way to Handle Your Cash in 2026 See the top five stocks to own each month in 2026... through a new feature of our "green day" system, which could've helped you double your money 13 different times last year with our corporate affiliate TradeSmith's official picks. This new feature has crushed the market nearly fourfold in back tests. Try it free of charge, here. Gold Is SOARING – Here's What You Need to Do Everything is lining up perfectly for a historic gold bull run... one that could send gold soaring past $5,000 in 2026. One gold research firm says it has found the best way to get in for less than $50. Click here for the full details. These Credit Giants Depend on Interest As I said, interest payments are a major source of income for these businesses. Financial giants like American Express (AXP), Capital One Financial (COF), and Mastercard (MA) would all be at risk of taking big hits to revenue. For example, Capital One grew its net interest income from roughly $8 billion in the third quarter of 2024 to $12 billion in the third quarter of last year alone. That's a massive jump of more than 50%. That figure accounted for about 80% of Capital One's total net revenue for the quarter. Meanwhile, American Express grew its third-quarter net interest income by about 12% year over year. This figure came in at roughly $4.5 billion for the quarter. Folks, it's clear these credit-card companies are raking in plenty of cash from interest payments. So a government-mandated rate cap on interest rates for credit cards would be a big deal for these businesses. But new research from the New York Federal Reserve shows that these interest-rate caps have unintended consequences... The New York Fed found that limits reduced credit availability by nearly 17%. And the number of accounts declined by 20%. Sadly, delinquency rates stayed the same. Folks, I'm not going to debate the effectiveness of interest-rate caps. And as I said, we don't know how the calls for these caps will ultimately play out. But for now, it's creating a bit of a storm over the credit-card industry. And we can see the headache playing out in the Power Gauge... The Power Gauge Shifted Its Ratings on Credit-Card Companies In just a week after Trump's announcement, shares of all three companies that I mentioned earlier slid. American Express and Mastercard each fell by more than 6%. Capital One lost more than 7% during that same time. The Power Gauge saw this in real time. On January 12, our system downgraded both American Express and Capital One from "bullish" to "neutral+." To be clear, I'm obviously not saying credit-card companies are doomed. We don't know what will ultimately happen with an interest-rate cap. Trump could also change his tune. But a potential interest-rate cap is clearly a big deal for major credit-card companies. Investors wouldn't like to see these companies' interest income get slashed. For now, American Express gets a "neutral" rating in the Power Gauge. Capital One edged back into "bullish" territory. And Mastercard is struggling with a "bearish" rating. Again, we'll have to see how it all ends up with a government "fix" with an interest-rate cap. It could mean a big shakeup for the credit-card industry. And as always, I'll take my cues from the Power Gauge when it comes to stocks in the space. Good investing, Ethan Goldman   Editor's note: It's clear that we're seeing big changes unfold so far in 2026... In fact, our friends at our corporate affiliate TradeSmith say that a huge event could set off the biggest market move since 2020... and open the most lucrative trading opportunity of the decade. As TradeSmith CEO Keith Kaplan says, it's a "blink and you'll miss it" moment. And he says it could double your money over and over as it unfolds. That's why later this morning, at 10 a.m. Eastern time, Keith is going on camera to share all the details – including the steps for you to take advantage.   Learn more and register to attend this free event right here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.21% 5 18 7 S&P 500 -0.08% 115 275 110 Nasdaq -0.08% 22 54 30 Small Caps +0.09% 668 967 258 Bonds -0.58% Real Estate +1.22% 1 17 13 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Real Estate +4.22% Consumer Staples +3.61% Industrials +3.07% Energy +2.19% Utilities +2.07% Materials +0.87% Information Technology -0.36% Health Care -1.0% Consumer Discretionary -1.7% Financial -2.31% Communication -2.32% *  *  *  * Industry Focus Retail Services 18 44 15 Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +3.53%. Its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #16 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks ABG Asbury Automotive Gr DDS Dillard's, Inc. M Macy's, Inc. *  *  *  * Top Movers Gainers SMCI +10.94% MU +7.76% MRNA +6.28% GEV +6.12% Q +4.44% Losers CEG -9.82% VST -7.54% AMCR -7.29% WST -7.02% APP -6.3% *  *  *  * Earnings Report Earnings Surprises PNC The PNC Financial Services Group, Inc. Q4 $4.88 Beat by $0.65 RF Regions Financial Corporation Q4 $0.57 Missed by $-0.04 STT State Street Corporation Q4 $2.97 Beat by $0.13 MTB M&T Bank Corporation Q4 $4.67 Beat by $0.20 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at ignoble.experiment@arconati.us. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2026 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.