Citigroup CEO Jane Fraser has expressed scepticism regarding the potential for Congress to approve caps on credit card interest rates, an idea recently floated by President Donald Trump. Speaking from Davos in an interview with CNBC, Fraser acknowledged the President’s focus on affordability but argued that capping rates would be detrimental to the U.S. economy. Citigroup is a global financial services company offering a wide range of banking and investment services to consumers, corporations, and governments. It operates across various segments, including consumer banking, institutional clients group, and wealth management.
Fraser warned that imposing a rate cap would restrict access to credit for a significant portion of American consumers. She further suggested that such a measure could negatively impact various sectors, including airlines, retailers, and restaurants, which rely heavily on consumer spending facilitated by credit cards. When questioned about the likelihood of legislative support for limiting credit card rates, Fraser stated her belief that bipartisan backing for such a move is unlikely.
Addressing recent workforce adjustments, Fraser confirmed that Citigroup, following a round of approximately 1,000 layoffs, does not currently plan to announce further large-scale headcount reductions. This statement provides some reassurance to employees amid ongoing economic uncertainty and restructuring efforts within the financial industry.
