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JPMorgan CFO says cap on credit card interest rates will impact US consumers, economy

BY Reuters | ECONOMIC | 08:16 AM EST

Jan 13 (Reuters) - JPMorgan Chase (JPM) believes that a proposed cap on credit card interest rates will adversely impact ?U.S. consumers and the economy, ?Chief Financial Officer Jeremy Barnum told ?reporters on a ?call ?on Tuesday.

U.S. President Donald Trump on ?Friday proposed ?a one-year cap on credit card interest rates at ?10% starting ?January ?20, hitting banking stocks on Monday.

Wall Street analysts remained skeptical ?about the move, pointing out that such a measure could only be enacted by Congress.

After being largely ?blindsided, financial ?groups ?quickly scrambled to rebut the proposal with new data ?that showed the cap would result in millions of American households and small businesses losing access to credit. (Reporting by Manya ?Saini in Bengaluru and Saeed Azhar in New York; Editing by Lananh ?Nguyen, Sriraj Kalluvila and Shinjini Ganguli)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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