American Express CEO Stephen Squeri expressed concerns that imposing a 10% interest rate cap on credit cards could lead to fewer credit card options for consumers nationwide. Speaking to Yahoo Finance, Squeri suggested that such a cap might reduce the availability of credit cards across the United States.
He emphasized that limiting interest rates could impact the credit market, potentially restricting access for many consumers who rely on credit cards for everyday expenses.
**Why this matters**
Interest rate caps on credit cards are being considered as a way to protect consumers from high borrowing costs. However, financial industry leaders warn that these caps could result in reduced credit availability, which may affect consumer spending and overall economic activity. Understanding the potential consequences helps inform the ongoing debate about credit regulation.
Source: News Source