Wall Street Vs. White House: CEOs Warn Trump's 10% Credit Card Rate Cap Would Freeze Lending

Core Viewpoint - Top executives from major financial institutions warn that President Trump's proposed 10% cap on credit card interest rates could backfire, potentially leading to a significant economic slowdown and reduced access to credit for high-risk borrowers [1][2][3][4][6][9] Group 1: Economic Impact - Citigroup's outgoing CFO Mark Mason stated that the interest rate cap would likely result in a significant slowdown in the economy, despite acknowledging the importance of affordability [3] - JPMorgan Chase's CFO Jeremy Barnum emphasized that the cap would not lower the price of credit but would instead reduce the supply of credit, leading to extensive loss of access for consumers [4][5] - Delta Air Lines' CEO Ed Bastian warned that the cap could disrupt the entire credit card industry, affecting access to credit for lower-end consumers and threatening loyalty programs [6] Group 2: Industry Response - Bank of America CEO Brian Moynihan highlighted the direct correlation between interest rate caps and credit availability, indicating that lower caps would restrict the number of people who can obtain credit cards [7] - Financial leaders collectively expressed a lack of support for the proposed cap, suggesting that it could have severe negative consequences for both consumers and the national economy [4][6][9]