U.S. Bancorp’s CEO Gunjan Kedia expressed significant concerns over President Donald Trump’s proposal to impose a 10% cap on credit card interest rates. Speaking to analysts, Kedia highlighted that such a policy could adversely affect over 90% of the bank’s clients, with half of them likely facing severe financial hardship. The implications of this cap could extend to the broader economy, echoing apprehensions voiced by the banking sector.
Kedia’s remarks come as stakeholders are looking for clarity on the potential enforcement of the rate cap, which is slated to take effect on January 20. However, Wall Street analysts suggest that passing such legislation seems unlikely. KBW managing director Sanjay Sakhrani indicated that the most viable path forward may involve the administration negotiating a compromise with the financial industry.
In light of these discussions, Kedia noted a shift toward more constructive dialogues regarding alternative measures to assist customers in the short term. As one of the largest credit card issuers in the United States, U.S. Bancorp concluded 2025 with a substantial $31 billion in credit card loans, primarily serving prime borrowers. The bank is also focusing on boosting financial education to help clients understand their available options.
When asked about the recent reintroduction of the Credit Card Competition Act, Kedia asserted that the proposal could impose significant costs on small merchants, failing to achieve its intended objectives.
On a positive note, U.S. Bancorp reported a fourth-quarter profit that surpassed analysts’ expectations, thanks to increased interest income and growth in fee revenue. The Federal Reserve’s recent rate cuts have spurred loan demand across the banking industry, contributing to higher earnings for major consumer banks. For this quarter, the bank generated earnings of $1.26 per share, exceeding the anticipated $1.19.
Looking ahead, U.S. Bancorp forecasts a revenue growth rate between 4% and 6% for 2026, excluding its proposed acquisition of BTIG.
