Citigroup CEO Jane Fraser told CNBC that the recent sell-off in American stocks, the dollar’s decline, and the surge in Treasury yields—accompanied by inflows into gold and silver—reflect short-term reactions to headlines rather than a sustainable trend. She noted that last Tuesday’s market plunge followed the White House announcement of tariffs in its Greenland strategy, but emphasized that investors lack attractive alternatives outside the U.S. equity and debt markets. Fraser cited research from Wedbush analysts who project that ‘the bark will be worse than the bite’ and that diplomatic negotiations between Washington and European capitals will calm trade tensions in the weeks ahead.

Despite geopolitical uncertainty, Fraser highlighted that U.S. consumer spending remained robust over the holiday season and is poised to accelerate this spring thanks to provisions in the latest tax legislation. She pointed to deregulation across key industries and record corporate investments in artificial intelligence as catalysts for earnings growth. According to Citigroup’s internal data, aggregate household consumption rose by 4.1% year-over-year in December, and corporate capex on technology initiatives is running at a 12-month high, giving companies the financial resilience to navigate trade disruptions.

On January 20, Fraser argued that a proposed 10% cap on credit card interest rates would have the unintended consequence of curtailing credit access for lower-income consumers. She noted that banks already offer ‘low-cost, no-frill’ card products while serving cardholders with rates ranging from 20% to 30%. A blanket cap, she warned, would force issuers to tighten underwriting standards, reducing availability for those who depend on revolving credit. Fraser added that sectors reliant on card spend—airlines, retailers, hotels and restaurants—would suffer revenue declines if consumer purchasing power were constrained by less accessible credit.