Interest rates on credit cards have been unusually high for a while and have become an occasional target of politicians. In 2020, during Kamala Harris' first presidential campaign, she proposed forbidding credit card companies from charging interest ...

A proposed 10% cap on credit card rates has shaken financial stocks, but the real economic effects are more nuanced than markets are currently pricing in. While the policy aims to relieve consumers under pressure from record-high APRs, it could reshape credit supply, spending behavior, and risk pricing across the system.