Citigroup CEO Jane Fraser told CNBC on Tuesday that the recent downturn in U.S. equities—when major indexes dropped more than 2%, the dollar slid against a basket of currencies, and Treasury yields spiked by over 15 basis points—reflects a short-term reaction to headlines rather than a durable shift away from American assets. Fraser pointed to the surge in gold and silver trading as classic ‘flight to safety’ behavior following the White House’s announcement over the long weekend that tariffs could be applied to control Greenland. She emphasized that corporate leaders, from technology firms to consumer goods companies, have navigated trade uncertainty in recent years and remain confident in U.S. fundamentals. Holiday retail spending exceeded $850 billion, she noted, and fiscal changes due this spring should sustain consumer demand. “Never bet against the American entrepreneur,” Fraser said, forecasting that momentum will revert to U.S. equity, credit and bond markets once short-lived headline risk subsides.

During the same CNBC appearance, Fraser criticized President Trump’s proposed 10% cap on credit card interest rates, warning that capping rates at that level would drive higher-risk borrowers out of the market. She noted that roughly 30% of cardholders currently pay rates between 20% and 30%, and a cap would force issuers to withdraw from underserved segments or impose steep annual fees. Fraser argued this would curtail consumer spending—credit card purchases account for nearly $1.2 trillion in annual U.S. retail outlays—and hit airlines, hotels, restaurants and retailers that earn interchange income. She predicted Congress will reject the proposal, saying “a cap would have the opposite effect of enhancing affordability” and restrict access to credit for those who need it most.