Wall Street executives warn Trump: Stop attacking the Fed and credit card industry
AP News • • business
Key Points:
- Wall Street's previously supportive relationship with 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 Department of Justice investigation into Federal Reserve Chair Jerome Powell.
- Bank CEOs warned that these actions could harm the American economy by undermining the Federal Reserve's independence and potentially increasing interest rates, contrary to the administration's goals of affordability and reducing borrowing costs.
- The proposed 10% cap on credit card interest rates, significantly lower than the current average of 19.65% to 21.5%, could cost banks around $100 billion annually, leading to sharp declines in credit card company stocks and strong industry opposition.
- JPMorgan Chase and other financial institutions argue
