Debating Credit Card Practices: A Treasury Perspective

U.S. Treasury Secretary Scott Bessent has called for discussions on the practices of credit card companies. His comments came after President Trump proposed a cap on credit card interest rates, a move aligned with some of Senator Elizabeth Warren's consumer protection policies. Bessent expressed concerns over regulation impacts.

U.S. Treasury Secretary Scott Bessent stated on Tuesday that it is worth considering discussions regarding the operating practices of credit card companies, suggesting several areas warrant examination.

During an interview with CNBC at the World Economic Forum in Davos, Bessent remarked, "I believe there are various aspects of credit card practices to evaluate, particularly in terms of their behaviors, and we'll see where that goes." His comments follow President Donald Trump's recent call for a one-year cap on credit card interest rates, supported by Democratic Senator Elizabeth Warren, known for her consumer financial protection advocacy.

Bessent acknowledged the alignment between Trump's administration and Warren on issues, stating, "The administration agrees with some of Senator Warren's policies, especially that the poorest should not bear the highest financial burdens." However, he criticized Warren's approach, noting her regulatory aims potentially contribute to the failure of small and community banks. Despite these concerns, Bessent reiterated the importance of discussing credit card company practices.

(With inputs from agencies.)