Stop attacking the Fed and credit card industry, Wall Street executives warn Trump
PBS • • business
Key Points:
- The relationship between Wall Street and the Trump administration has deteriorated due to the president's recent proposals, including a one-year, 10% cap on credit card interest rates and a Justice Department investigation into Federal Reserve Chair Jerome Powell.
- Bank CEOs warned that Trump's actions, particularly the attack on the Fed's independence, could harm the American economy by shaking confidence in the bond market and potentially raising interest rates.
- The proposed 10% cap on credit card interest rates could cost banks approximately $100 billion annually, leading to sharp declines in credit card company stocks and strong opposition from industry leaders.
- JPMorgan and other major banks indicated they would aggressively oppose the interest rate cap, arguing it would reduce credit supply and negatively impact consumers, the broader economy
