Calling Back to Jimmy Carter, Citigroup’s CEO Says Credit Card Rate Caps Would ‘Not Be Good’ for the U.S. Economy

Adding to the clamor of the banking industry against the Trump administration's proposed cap of 10% interest on credit card debt for one year, Citigroup (C) CEO Jane Fraser has harked back to the era of former President Jimmy Carter to remind the present regime that this move has failed earlier. At Davos, where the who's who of world and corporate leaders have descended, Fraser remarked, “I think there's a very keen understanding that this would have the opposite impact of what the actual intent would be, and there are better ways to go about it.”

Straying off course by highlighting that affordability remains an issue in the country, Fraser, however, said that capping interest rates on credit card debt would hurt credit access and negatively impact the purchasing power of the general public. Pointing towards a similar move in the Carter administration, the Harvard alumna said, "Within two months, it was completely reversed."