Wall Street Banks Push Back on Trump's Cost-Cutting Plans

Major Wall Street banks are challenging certain plans by President Trump to reduce the cost of living, suggesting alternatives. These financial institutions are skeptical about proposals like capping credit card rates and stress the need for more viable solutions to address American affordability issues.

Major Wall Street banks are voicing skepticism over some of President Donald Trump's attempts to slash U.S. living costs ahead of the mid-term elections, insiders say. While questioning the efficacy of Trump's plans, such as capping credit card interest rates, banks are lobbying for other strategies.

Executives are proposing alternatives, like boosting retirement savings and transferring wealth earlier. However, these suggestions aren't anticipated to significantly lower living costs, a pressing issue as November's elections loom. Discussions, held confidentially, are ongoing, awaiting policy clarity from the Trump administration.

Economic concerns, notably high living expenses, played a part in Trump's 2024 election victory. Despite a post-COVID inflation dip, essential costs remain steep, affecting Republican election prospects. Trump has proposed measures, including credit card rate caps and using retirement funds for home purchases, but banks warn these could economically backfire.

(With inputs from agencies.)