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Bill Ackman says Trump's call for a one-year cap on credit card interest rates 'a mistake'

BY Reuters | ECONOMIC | 01/09/26 09:31 PM EST

Jan 9 (Reuters) - U.S. hedge fund manager Bill Ackman said on ?Friday that U.S. ?President Donald Trump's ?call for ?a one-year ?cap on credit ?card interest ?rates at 10% starting ?on January 20 "is ?a ?mistake".

"Without being able to charge rates ?adequate enough to cover losses and earn an adequate ?return ?on equity, credit card lenders will ?cancel cards for millions of consumers," Ackman said in an X ?post. (Reporting by Anusha Shah in Bengaluru; Editing ?by Tom Hogue)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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