By Stephen Rohrer (Wealth Manager) at Life Financial Group
Originally shared on the Life in the Markets podcast — 1/19/2026

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*Note: you will get the most out of this market update by watching the video above*

Market & Economic Commentary

Markets finished the week largely unchanged. The S&P 500 and the tech-heavy NASDAQ both ended nearly flat, with the S&P 500 down just 0.07%. The Dow Jones Industrial Average also slipped slightly, finishing the week down 0.18%.

In commodities, spot gold prices briefly touched a record high earlier in the week before pulling back modestly, ending down approximately 0.06% and trading near $4,595 per ounce. Silver experienced a sharp rise early in the week as well but ultimately declined about 3% by Friday.

On the labor front, initial jobless claims for the week ending January 10 fell to 198,000, down from 207,000 the prior week. This improvement lowered the four-week moving average to 205,000, compared to 212,000 previously. Continuing jobless claims also declined, falling back below 1.9 million to 1.884 million.

Mortgage rates continued to ease, with the average 30-year mortgage rate declining to 6.18%. Following the holiday season, refinancing applications surged 40% week-over-week, while purchase applications increased 16%.

 

Credit Card Interest Rate Cap Proposal

President Trump announced a proposal to cap credit card interest rates at 10% for one year. While details remain unclear—specifically whether this would be enacted through executive action or congressional legislation—the idea itself is not new.

Interestingly, support for interest rate caps has come from across the political spectrum. Senator Bernie Sanders introduced similar legislation in early 2025, with backing from Congresswoman Alexandria Ocasio-Cortez. At the same time, Senator Josh Hawley has also voiced support for comparable measures. This wide ideological agreement highlights the complexity and significance of the issue.

Free-market advocates often object to such caps, arguing that companies should be free to charge whatever consumers are willing to accept, likening interest rate caps to price controls. However, interest on loans has historically—and biblically—been treated differently than pricing for goods and services.

 

A Biblical Perspective on Interest and Usury

Scripture consistently warns against excessive interest, often translated as usury. Merriam-Webster defines usury as “the lending of money with an interest charge…especially at exorbitant rates.”

Several passages illustrate the seriousness with which God views this issue:

  • Exodus 22:25 – “If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him.”
  • Leviticus 25:36–37 – “Take no interest from him or profit…that your brother may live beside you.”
  • Deuteronomy 23:19–20 (KJV) – “Thou shalt not lend upon usury to thy brother…”
  • Proverbs 28:8 – “He who increases his wealth by interest and usury gathers it for another who is kind to the poor.”
  • Ezekiel 18:8 – “He has not exacted usury…but has executed true justice.”

God also established the Year of Jubilee, which included debt forgiveness, underscoring His concern for economic justice and human dignity.

Historically, the Christian church largely prohibited Christians from charging interest to fellow believers. Over time, Reformers like John Calvin argued that biblical prohibitions addressed excessive interest and distinguished consumer loans from business lending—a debate that continues today.

 

Would a 10% Cap Harm Credit Access?

One common argument against interest rate caps is that they could restrict access to credit, pushing vulnerable consumers toward predatory lenders. However, a Vanderbilt University study found that even with a 10% cap, credit card issuers would remain highly profitable.

The study also noted that roughly 80% of the credit card market is controlled by the top ten issuers—making it unlikely they would exit the market.

For example, JPMorgan Chase reported $28 billion in annual revenue from its Card Services and Auto division, contributing to $57 billion in total net income. While such a cap could impact profit growth, it would not threaten the institution’s survival.

 

Would Lower Rates Encourage More Debt?

Scripture reminds us that “the borrower is servant to the lender” (Proverbs 22:7), and excessive consumer debt is never ideal. However, reducing interest rates dramatically improves the ability of individuals to escape debt.

Most people who accumulate credit card debt do so out of desperation or impulse, not after carefully calculating interest rates. Lower rates won’t solve poor financial habits, but they can significantly shorten the path to freedom for those already burdened by debt.

 

Looking Ahead: AI vs. the Dot-Com Bubble

As we look forward, Capital Group recently published a compelling comparison between the Dot-Com bubble and today’s AI-driven market growth.

The chart compares market prices (green line) to actual earnings (blue line). During the Dot-Com era, the disconnect between prices and earnings was dramatic—even among established companies like Microsoft, Dell, Cisco, and Intel.

In contrast, today’s AI-exposed leaders—NVIDIA, Microsoft, Apple, Amazon, Meta, Broadcom, and Alphabet—show market prices that track much more closely with reported earnings. While risks remain, this suggests a fundamentally different environment than the late-1990s tech bubble.

 

Verse of the Week

Proverbs 22:7
“The rich rules over the poor, and the borrower is the slave of the lender.”

 

 

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[1]  Per finance.yahoo.com, the broadly diversified ishares MSCI EAFE ETF (EFA) shows a return of 31.55% for calendar year 2025.

[2]  Per YCharts, annual standard deviation of the gold ETF GLD is 16.98% and the S&P 500 ETF SPY is 15.81%.

Disclaimer: The topics discussed here are for informational purposes only and do not constitute specific investment advice. Investing involves risks, including potential loss of principal. Past performance does not guarantee future results. Securities and advisory services offered through Geneos Wealth Management, member FINRA/SIPC.