Citigroup Chair and CEO Jane Fraser told CNBC on Tuesday that recent headline-driven outflows from U.S. assets are likely a short-lived reaction. She pointed out that on the day trading resumed after the White House’s Greenland tariff announcement, U.S. stocks plunged, the dollar weakened and bond prices fell, pushing Treasury yields sharply higher, while investors sought safety in gold and silver. Fraser emphasized that investors have limited alternatives, stating “I don’t see where else you [investors] go” and urging: “Never bet against the American entrepreneur. The consumer is strong.” She noted that holiday consumer spending remained robust and could receive a further boost this spring due to recent tax code changes, deregulation and corporate investment in AI. Wedbush analysts echoed her view in a research note, predicting that “the bark will be worse than the bite” as tariff negotiations with EU leaders calm tensions over coming weeks.

On January 20, Fraser criticized President Trump’s proposal for a one-year 10% cap on credit card interest rates, predicting Congress will not support the measure. She argued that capping rates at 10% would reduce access to credit for lower-income consumers, leading to a drop in household spending and striking at industries reliant on card transactions—airlines, retailers, hotels and restaurants would see revenues fall along with the loss of co-brand fees. Fraser highlighted that banks already offer “low-cost, no-frill” credit products and that a cap would produce “the opposite impact of what the actual intent would be.” Her comments followed a Truth Social post by the president citing consumer rates of “20 to 30%,” and came just days before JPMorgan Chase CFO Jeremy Barnum warned that forced rate limits could prompt the banking industry to explore all options in defense of profitability and shareholder returns.