off-the-wire

Bank of America, Citigroup consider new credit cards with 10% rate, Bloomberg News reports

Kitco Media
By Reuters
Published:
Updated:
Reuters
Bank of America, Citigroup consider new credit cards with 10% rate, Bloomberg News reports teaser image

Jan 22 (Reuters) - Bank of America (BAC.N), and Citigroup (C.N), are considering ​options to offer new credit ‌cards with an interest rate cap of 10% to satisfy President Donald Trump's demands, Bloomberg ‌News reported on Thursday.

Both banks ​are weighing the new cards as a potential solution to ‍the cap, the report said, citing people familiar with the matter.

Citigroup and ⁠Bank of America did not ‍immediately respond to Reuters' request for comment.

Trump ‌said ‌on Wednesday he would ask Congress to approve a 10% interest rate cap on credit ⁠cards for ⁠one ​year.

Industry executives have warned the move would prompt a pullback on lending and ‍curb economic growth, though some experts argue credit cards are highly ​profitable and have ‍room for lower rates.

Reporting by Utkarsh Shetti ​in Bengaluru; Editing by Alan Barona

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.