US EditionWall Street executives warn Trump: Stop attacking the Fed and credit card industry
Wall Street warns Trump that capping credit card rates at 10% could cost banks $100 billion annually and reduce credit availability, risking market volatility and higher interest rates.
- On Tuesday, bank CEOs warned the White House that President Donald Trump's actions will do more harm than good to the American economy, while shares of major credit-card companies fell sharply Monday amid cap concerns.
- The administration proposed a one-year, 10% cap on card rates and the DOJ opened an investigation into Federal Reserve Chair Jerome Powell.
- Researchers at Vanderbilt found a 10% cap would likely cost banks roughly $100 billion per year, and JPMorgan CFO Jeffrey Barnum warned the industry will fight 'with all resources' to oppose it.
- The relationship has suddenly soured as Wall Street and the banking industry said Trump doubled down overnight, publicly backing measures targeting bank revenue streams, escalating the dispute.
- The Federal Reserve's independence remains sacrosanct among big banks, which say political probes threaten that norm after benefiting from Trump administration tax cuts and deregulation.
17 Articles
17 Articles
Trump's "Fix Affordability" 10% Credit Card Interest Rate Cap: A Gimmick, Not a Solution (and It Won't Happen Anyhow)
It has gotten through to Trump that the state of the economy, and particularly consumer suffering from persistently high costs, aka the affordability crisis, can’t be solved by his barker’s patter about how great things are. So he’s roused himself to try to find some quick and easy wins so he can present himself as […]
Until this week Wall Street had generally benefited from the policies of the Trump administration and supported the President of the United States. This relationship suddenly deteriorated.
Associated Press News
Wall Street executives warn Trump: Stop attacking the Fed and credit card industry
Wall Street's relationship with the Trump administration is souring. Bank executives warned the White House on Tuesday that President Donald Trump's policies and the Justice Department's investigation into Federal Reserve Chairman Jerome Powell could harm the economy.
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