Citi CFO Warns 10% Credit Card Rate Cap Would Disrupt U.S. Economy

Speaking at an investor conference, Citi’s head of U.S. personal banking and incoming Chief Financial Officer, Gonzalo Luchetti, warned that a proposed 10 percent federal cap on credit card interest rates would significantly reduce credit availability and generate broader economic consequences, even as the bank expects continued growth in its credit card business.

Luchetti said that credit cards will remain a core priority for Citi in 2026 and that the bank sees ongoing resilience in U.S. consumer spending. However, he cautioned that an interest rate cap could materially restrict credit lines, particularly for lower-income borrowers and customers with lower FICO scores, making portions of the portfolio economically unsustainable.

Luchetti said that credit card spending represents a substantial share of overall U.S. economic activity and warned that limiting price flexibility could have ripple effects across retail, hospitality, and travel. While Citi supports affordability initiatives, he indicated that the bank views a uniform 10 percent cap as likely to reduce access to revolving credit, rather than expand it.

The proposal, endorsed by President Donald Trump and introduced in bipartisan legislation by Sens. Josh Hawley (R-Mo.) and Bernie Sanders (I-Vt.), has drawn opposition from major banking trade groups, which argue that rate caps prevent lenders from pricing for risk and would result in tighter underwriting, lower credit limits, and reduced rewards programs.