US Bancorp CEO warns of big hit to clients from Trump's credit card cap

Group 1 - U.S. Bancorp CEO Gunjan Kedia expressed concerns that President Trump's proposed 10% cap on credit card interest rates would negatively affect over 90% of the bank's clients and have a crushing impact on 50% of them, as well as the broader economy [1][2] - The banking industry anticipates that the proposed rate cap would require legislation and is unlikely to be enacted by the January 20 deadline [2] - Kedia mentioned that discussions around the rate cap have recently shifted towards finding short-term solutions to assist customers [3] Group 2 - U.S. Bancorp, one of the largest credit card issuers in the U.S., reported a fourth-quarter profit that exceeded analysts' expectations, driven by increased interest payments and growth in fee revenue [4] - The bank earned $1.26 per share in the quarter, surpassing estimates of $1.19, and expects revenue growth of 4% to 6% in 2026, excluding the proposed acquisition of BTIG [5] - The Federal Reserve's rate cuts have stimulated loan demand across the industry, contributing to the earnings growth of major consumer banks [5]