NEW YORK— As President Donald Trump presses Congress to consider a cap on credit card interest rates, Citigroup CEO Jane Fraser said this week she does not expect lawmakers to approve such a move, warning it would harm the broader U.S. economy.
“The president is right in focusing on affordability,” Fraser said in an interview with CNBC from Davos. “But capping rates would not be good for the U.S. economy,” she added. A rate cap would cut access to credit for a large portion of U.S. consumers and ripple across industries including airlines, retailers, and restaurants, she said.
Asked whether there was meaningful support on Capitol Hill for legislation limiting credit card rates, Fraser said she does not believe bipartisan backing exists, according to Reuters.
Fraser also addressed workforce reductions at the bank, saying that following a recent round of roughly 1,000 layoffs, Citigroup does not plan to announce additional large-scale headcount cuts, Reuters noted.