Citigroup CEO Jane Fraser told CNBC on Tuesday that the recent sell-off in American equities, bonds and the dollar represents a short-term reaction to geopolitical headlines rather than a lasting trend. Fraser noted that U.S. stocks plunged 3.2% and Treasury yields rose by 25 basis points on the day the White House announced potential tariffs related to Greenland, while gold and silver saw inflows of over $400 million. She emphasized that investors have limited viable alternatives to U.S. markets and that long-term momentum will revert to American assets, driven by strong consumer spending that grew at a 2.1% annual rate last quarter and continued corporate earnings growth.

Speaking to the same CNBC audience, Fraser argued that a proposed 10% cap on credit card interest rates would restrict access to credit for lower-income consumers and harm sectors reliant on card spending. She cited Citigroup data showing that 28% of outstanding card balances yield rates above 18%, and warned that a cap would force banks to curtail lending to riskier borrowers. Fraser asserted that existing “low-cost, no-frill” products already provide affordability, and predicted that Congress will reject the measure, given bipartisan concern over its potential to reduce overall card issuance by up to 15%.

Fraser highlighted the broader consequences of credit restrictions, projecting a 0.5% drag on GDP growth if cardholder balances contracted by $100 billion. She pointed to downstream effects on airlines, retailers, hotels and restaurants, which together generated $75 billion in loyalty-program revenues last year through card partnerships. The CEO also reiterated confidence in a swift resolution of trade tensions, noting that corporate clients have adapted to previous tariff episodes and that Citigroup’s commercial loan book saw non-performing assets remain stable at 0.9% despite recent volatility.