Modi says India has only paused military action after it and Pakistan stop firing at each other

NEW DELHI (AP) — India has only “paused" its military action and will “retaliate on its own terms” if there is any future terror attack on the country, Prime Minister Narendra Modi said Monday in his first public comments since a U.S.-brokered ceasefire over the weekend.

Modi spoke after Indian and Pakistani authorities said there was no firing reported overnight along the heavily militarized region between their countries — the first time in recent days the nations were not shooting at each other.

The escalating hostilities between the nuclear-armed rivals after a deadly attack on tourists in Kashmir had threatened regional peace. India accused Pakistan of backing the militants who carried out the massacre, a charge Islamabad denied.

“We will be monitoring every step of Pakistan," Modi said in an address to the nation. He added, in response to international calls for dialogue, that if India talks to Pakistan, it will be only about terrorism and Pakistan-controlled Kashmir. Both the nations administer parts of Kashmir but claim it in its entirety.

“Terror and talks can’t go together. Nor can terror and trade,” Modi said.

He did not acknowledge U.S. President Donald Trump's offer to mediate. India and Pakistan reached an understanding to stop all military actions on land, in the air and at the sea on Saturday.

Pakistani Prime Minister Shehbaz Sharif, for his part, said his country agreed to the ceasefire “in the spirit of peace” but will never tolerate violations of its sovereignty and territorial integrity. He spoke during a meeting with the Turkish ambassador, according to a government statement.

Senior military officials from India and Pakistan spoke via a hotline on Monday to assess if the ceasefire was holding and how to ensure implementation.

The Indian army in a statement said the officials discussed the commitment of not “firing a single shot" or initiating aggressive action. The two sides agreed to consider taking immediate measures to reduce the number of troops in border and forward areas, it said.

“The night remained largely peaceful across Jammu and Kashmir, and other areas along the international border,” the Indian army said, adding that no incidents had been reported.

Local government officials in Pakistan-administered Kashmir reported no incidents of cross-border firing along the Line of Control — the de facto border that divides the disputed Kashmir region between India and Pakistan — and said civilians displaced by recent skirmishes were returning to their homes.

Pakistan’s military spokesperson, Lt. Gen. Ahmad Sharif, said late Sunday that Pakistan remains committed to upholding the ceasefire and will not be the first to violate it.

Soon after the ceasefire announcement, Pakistan reopened all airports and restored flight operations. India on Monday reopened the 32 airports that were shut temporarily across its northern and western regions.

The countries' militaries had been engaged in one of their most serious confrontations in decades since Wednesday, when India struck targets inside Pakistan it said were affiliated with militants responsible for the massacre of 26 tourists last month in Indian-controlled Kashmir. The tourists, mostly Indian Hindu men, were killed in front of their families.

The incident first led to tit-for-tat diplomatic measures. The countries expelled each other’s diplomats, shut their airspace and land borders and suspended a crucial water treaty.

After Wednesday's strikes in Pakistan, both sides exchanged heavy fire in Kashmir followed by missile and drone strikes into each other’s territories, mainly targeting military installations and airbases. Dozens of civilians were killed on both sides, the two countries said.

The Indian military on Sunday for the first time claimed its strikes into Pakistan-controlled Kashmir and Pakistan last week killed more than 100 militants, including prominent leaders.

Lt. Gen. Rajiv Ghai, the director general of India’s military operations, said India’s armed forces struck nine militant infrastructure and training facilities, including sites of the Lashkar-e-Taiba group that India blames for carrying out major militant strikes in India.

Ghai also said at least 35 to 40 Pakistani soldiers were killed in clashes along the Line of Control. Five Indian soldiers were also killed, he said.

Pakistan’s Information Minister Attaullah Tarar on Thursday said his country’s armed forces had killed 40 to 50 Indian soldiers along the Line of Control. Pakistani military also claimed to have shot down five Indian fighter jets and inflected heavy losses on Indian military installations by targeting 26 locations in India.

The Associated Press couldn’t independently verify the claims made by India and Pakistan.

Air Chief Marshal AK Bharti, the director general India’s air operations, told a news conference on Monday that despite “minor damage (s) incurred, all our military bases and air defense systems continue to remain fully operational, and ready to undertake any further missions, should the need so arise.”

Bharti reiterated that New Delhi’s fight was “with terrorists, and not with Pakistan military or its civilians.”

Associated Press writer Munir Ahmed in Islamabad contributed to this report.

A man watches the live telecast of Indian Prime Minister Narendra Modi's speech on television screens at a shopping mall after 'Operation Sindoor' in Mumbai, India, Monday, May 12, 2025. (AP Photo/Rajanish Kakade)

People watch the live telecast of Indian Prime Minister Narendra Modi's speech on television screens at a shopping mall after 'Operation Sindoor' in Mumbai, India, Monday, May 12, 2025. (AP Photo/Rajanish Kakade)

Family members watch the live telecast of Indian Prime Minister Narendra Modi's speech on a television at their residence in Hyderabad, India, Monday, May 12, 2025. (AP Photo/Mahesh Kumar A.)

An Indian muslim shopkeeper watches on a phone the live telecast of Indian Prime Minister Narendra Modi's speech on television screens, in Prayagraj, in the northern Indian state of Uttar Pradesh, India, Monday, May 12, 2025. (AP Photo/Rajesh Kumar Singh)

Indian soldiers patrol as a street vendor takes a nap after India and Pakistan reported no incidents of firing overnight, in Srinagar, Indian controlled Kashmir Monday, May 12, 2025. (AP Photo/Mukhtar Khan)

Indian Border Security Force (BSF) soldiers pay tribute during the wreath-laying ceremony of their colleague Deepak Chimngakham, who was killed in cross border Pakistani artillery shelling, in Jammu, Monday, May 12, 2025. (AP Photo/Channi Anand)

Indian Border Security Force (BSF) Soldiers carry a coffin containing the remains of a fellow soldier Deepak Chimngakham, who was killed in cross border Pakistani artillery shelling, in Jammu, India, Monday, May 12, 2025.(AP Photo/Channi Anand)

A villager cleans the roof of his house damaged by Pakistani artillery shelling at RS Pura, along the International Border, India, Monday, May 12, 2025, after the two countries reported no incidents of firing overnight. (AP Photo/Channi Anand)

A girl evacuated from her village along the India Pakistan border takes refuge in a makeshift center in a school at RS Pura, along the International Border, India, Monday, May 12, 2025. (AP Photo/Channi Anand)

A girl evacuated from her village along the India Pakistan border takes refuge in a makeshift center in a school at RS Pura, along the International Border, India, Monday, May 12, 2025. (AP Photo/Channi Anand)

Villagers fill sacks with wheat grains after harvesting at RS Pura, along the International Border, India, Monday, May 12, 2025. (AP Photo/Channi Anand)

An empty Pakistani military post is seen from Indian side from Suchetgarh village after the two countries reported no incidents of firing overnight, Monday, May 12, 2025. (AP Photo/Channi Anand)

A villager cleans the roof of his house damaged by Pakistani artillery shelling at RS Pura, along the International Border, India, Monday, May 12, 2025, after the two countries reported no incidents of firing overnight. (AP Photo/Channi Anand)

An Indian soldier feeds pigeons at a market, day after India and Pakistan agreed to a ceasefire Saturday following U.S.-led talks to end the most serious military confrontation between the nuclear-armed rivals in decades, in Srinagar, in Indian controlled Kashmir, Sunday, May 11, 2025.(AP Photo/Mukhtar Khan)

NEW YORK (AP) — Up until this week, Wall Street has generally benefited from the Trump administration’s policies and has been supportive of the president. That relationship has suddenly soured.

When President Donald Trump signed the One Big Beautiful Bill into law in July, it pushed another significant round of tax cuts and also cut the budget of the Consumer Financial Protection Bureau, at times the banking industry's nemesis, by nearly half. Trump’s bank regulators have also been pushing a deregulatory agenda that both banks and large corporations have embraced.

But now the president has proposed a one-year, 10% cap on the interest rate on credit cards, a lucrative business for many financial institutions, and his Department of Justice has launched an investigation into Federal Reserve Chair Jerome Powell that many say threatens the institution that is supposed to set interest rates free of political interference.

Bank CEOs warned the White House on Tuesday that Trump’s actions will do more harm than good to the American economy. But in response, Trump did not back down on his proposals or attacks on the Fed.

BNY Chief Executive Officer Robin Vince told reporters that going after the Fed’s independence “doesn’t seem, to us, to be accomplishing the administration’s primary objectives for things like affordability, reducing the cost of borrowing, reducing the cost of mortgages, reducing the cost of everyday living for Americans.”

“Let’s not shake the foundation of the bond market and potentially do something that could cause interest rates to actually get pushed up, because somehow there’s lack of confidence in the Fed’s independence,” Vince added.

The Federal Reserve’s independence is sacrosanct among the big banks. While banks may have wanted Powell and other Fed policymakers to move interest rates one way or another more quickly, they have generally understood why Powell has done what he's done.

“I don’t agree with everything the Fed has done. I do have enormous respect for Jay Powell, the man,” JPMorgan Chase CEO Jamie Dimon told reporters Tuesday.

Dimon's message did not seem to resonate with President Trump, who told journalists that Dimon is wrong in saying it’s not a great idea to chip away at the Federal Reserve’s independence by going after Chair Jerome Powell.

“Yeah, I think it’s fine what I’m doing,” Trump said Tuesday in response to a reporter’s question at Joint Base Andrews after returning from a day trip to Michigan. He called Powell “a bad Fed person” who has “done a bad job.”

Along with the attacks on the Fed, President Trump is going after the credit card industry. With “affordability” likely to be a key issue in this year’s midterm elections, Trump wants to lower costs for consumers and says he wants a 10% cap on credit card interest rates in place by Jan. 20. Whether he hopes to accomplish this by bullying the credit card industry into just capping interest rates voluntarily, or through some sort of executive action, is unclear.

The average interest rate on credit cards is between 19.65% and 21.5%, according to the Federal Reserve and other industry tracking sources. A cap of 10% would likely cost banks roughly $100 billion in lost revenue per year, researchers at Vanderbilt University found. Shares of credit card companies like American Express, JPMorgan, Citigroup, Capital One and others fell sharply Monday as investors worried about the potential hit to profits these banks may face if an interest rate cap were implemented.

In a call with reporters, JPMorgan’s Chief Financial Officer Jeffrey Barnum indicated the industry was willing to fight with all resources at its disposal to stop the Trump administration from capping those rates. JPMorgan is one of the nation's biggest credit card companies, with its customers collectively holding $239.4 billion in balances with the bank, and having major co-brand partnerships with companies such as United Airlines and Amazon. JPMorgan also recently acquired the Apple Card credit card portfolio from Goldman Sachs.

“Our belief is that actions like this will have the exact opposite consequence to what the administration wants in terms of helping consumers,” Barnum said. “Instead of lowering the price of credit, it will simply reduce the supply of credit, and that will be bad for everyone: consumers, the broader economy, and yes, for us, also.”

Even the major airline and hotel partners who partner with banks to issue their cards were also not pleased with the White House's push to cap interest rates.

“I think one of the big issues and challenges with (a potential cap) is the fact that it would actually restrict the lower end consumer from having access to any credit, not just what the interest rate they’re paying, which would upend the whole credit card industry,” said Ed Bastion, CEO of Delta Air Lines, to analysts on Tuesday. Delta has a major partnership with American Express, and its co-brand credit card brings in billions of dollars in revenue for Delta.

Trump seemed to double down on his attacks on the credit card industry overnight. In a post on his social media platform Truth Social, he said he endorsed a bill introduced by Sen. Roger Marshall, R-Kansas, that would likely cut into the revenue banks earn from merchants whenever they accept a credit card at point-of-sale.

“Everyone should support great Republican Senator Roger Marshall’s Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff,” Trump wrote.

Trump told reporters Tuesday that he was not going to back down the credit card interest rate issue.

“We should have lower rates. Jamie Dimon probably wants higher rates. Maybe he makes more money that way,” Trump said.

The comments from Wall Street are coming as the major banks report their quarterly results. JPMorgan, the nation’s largest consumer and investment bank, and The Bank of New York Mellon Corp., one of the world’s largest custodial banks, both reported their results Tuesday with Citigroup, Bank of America, Wells Fargo and others to report later this week.

President Donald Trump arrives at Joint Base Andrews, Tuesday, Jan. 13, 2026, in Joint Base Andrews, Md. (AP Photo/Evan Vucci)

FILE - Jamie Dimon, CEO of JPMorgan Chase, speaks at the America Business Forum, Thursday, Nov. 6, 2025, in Miami. (AP Photo/Rebecca Blackwell, file)