Bank of America and Citi Consider Offering Credit Cards With 10% Interest Rate

Core Viewpoint - Bank of America and Citigroup are considering offering credit cards with a 10% interest rate in response to President Trump's demand for a cap on rates, which has raised concerns about its potential impact on consumer spending and credit availability [1][2]. Group 1: Company Responses - Bank of America CEO Brian Moynihan expressed that a 10% interest cap would slow consumer spending and limit credit availability, although he acknowledged the legitimacy of affordability issues behind the proposal [3]. - Citigroup Chair and CEO Jane Fraser stated that the proposed cap would restrict access to credit, potentially benefiting only the wealthy and negatively impacting sectors reliant on credit card spending [4]. - JPMorgan Chase CEO Jamie Dimon warned that a 10% cap would be catastrophic, removing credit access for 80% of Americans who rely on it as backup [5]. Group 2: Industry Reactions - The proposal for a 10% cap on credit card interest rates has faced criticism from various industry groups, including the Bank Policy Institute and the American Bankers Association, highlighting concerns over its implications for credit access and consumer spending [7]. - Trump initially called for the cap in a post on Truth Social, emphasizing the need to protect the public from high-interest rates charged by credit card companies [6].