Citigroup Chair & CEO Jane Fraser Speaks with Sara Eisen on "Squawk on the Street"
- Details
- Category: Business/Financial News
- Published on Wednesday, 21 January 2026 10:41
- Written by CNBC Squawk on the Street
CNBC's Sara Eisen sat down with Citigroup Chair & CEO Jane Fraser, from the World Economic Forum in Davos, Switzerland, where they discussed U.S. strength, the economy, credit card gap, jobs, and consumer outlook.
FRASER ON MARKETS TODAY
JANE FRASER: There are certainly plenty of headlines today, and it's always important to cut through some of the noise. It's not unexpected that the markets would be selling off at the moment, but I think there's a couple of things. First of all, many of us in the corporate world do have some confidence that when the government leaders do engage, which they will, the allies will come to some form of resolution.
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FRASER ON SENSE OF OPTIMISM
FRASER: My expectation's that over the next few days there'll be plenty of dialog, plenty of engagement, and I think that's what the business community will be looking to. Because when you step back, there is a general sense of optimism. I think the growth that the world is in a pretty good place at the moment. The US is operating from a position of strength. We've got consumer spending looking good over the holiday season. We've got the Big Beautiful Bill going to be delivering some important tax benefits in for the consumer in the Spring, a lot of investment in AI and beyond from the corporate sector, and deregulation is making a difference. So, I think when you cut through the noise, there's a lot of areas to be optimistic about '26 on, but it will be volatile.
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FRASER ON US STRENGTH
FRASER: I think you're seeing some immediate reaction today, and there's always immediate reaction to some of the headlines and noises. That is to be expected.
EISEN: So, you don't think the attitude has changed for US assets?
FRASER: I don't see where else you go. Never bet against the American entrepreneur. The consumer is strong. The front foot on innovation in the US is extraordinary. Every single company I've been meeting with today is talking M&A, is talking IPOs, is talking investment needs, and it's exciting. They're seeing productivity improvements starting to come through. So, the geopolitical backdrop is a challenging one, but the companies know how to navigate through this.
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FRASER ON CREDIT CARD CAP
FRASER: I think the President is right to focus on affordability, because there are some of the consumers out there that it is tough at the moment, and that is why, as banks, we have products which are low cost, no frill, alternatives for them to make sure there's access to credit. We're the leading affordable housing lender in America. So, I think there's some there's some good products and capabilities there, but this would not be good for the economy–
EISEN: What would it do—
FRASER: Were this to happen. Look back to the Carter administration, when this was last tried in the States. Within two months, it was completely reversed, and that's because caps do the opposite of what you think they would and what they intend to do. They really restrict access to credit and no one wants a situation where only the rich have access to credit cards.
EISEN: Is that what would happen if the cap was put on? You wouldn't be able to–
FRASER: You would not be able to provide credit and access to credit the people who need it the most. And it's one of the ironies of it. I think, though the larger macro effects are probably worrying as well. Spending would be severely curtailed because credit cards are a big driver of spending. It would have an impact through multiple sectors. So, think of the airlines, think of retailers, think of hotels and restaurants very dependent on card spend and also the profitability from the partnerships that they have. So, let's, let's make sure that we extend access to credit, we don't restrict it.
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EISEN: Not a good idea. So, are you lobbying Congress on this? I mean, do you think there's a realistic chance that there's bipartisan support?
FRASER: Uh, no.
EISEN: You don't?
FRASER: I don't, no.
EISEN: That's not what you're hearing?
FRASER: No, I think there's, there is a very keen understanding that this would have the opposite impact of what was - what the actual intent would be, and that there are better, better ways to go about it, and we're very happy and continue to work on providing them.
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FRASER ON FED
FRASER: What I care a lot about is making sure that the US financial system retains its leadership globally, and that credibility rests partly on the independence of the Fed being sacrosanct in the financial system. And when that independence is challenged, then that tends to actually, ironically, increase the long-term yield curve rather than the opposite.
FRASER ON HEADCOUNT
FRASER: I think you'll see from many companies the usual beginning-of-the-year adjustments. What I see going on in the in the job market, in our own company, we're seeing new jobs being created in areas we're investing in, and areas where there's innovation. You see other areas where jobs are changing, and you see areas where jobs are going away because of automation, or, in our case, as well as we close and end up our transformation program. So, there's a lot of dynamism, but it feels like the normal beginning-of-the-year adjustments and not something anomalous.
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FRASER ON CITI JOBS
FRASER: We're going to see new jobs created. We're going to see jobs change, and we'll see some jobs go away. One of the data points I'm most proud of is last year, over 50% of the new job openings we had at CitI were filled by our own employees. So, mobility and the adaptability of our workforce is high, and so we intend to make sure there's plenty of opportunities for those whose jobs are changing.
CNBC's "Squawk Box" Anchors Joe Kernen, Becky Quick, and Andrew Ross Sorkin as well as "Squawk on the Street" & "Money Movers" Co-Anchor Sara Eisen will be live again in Davos tomorrow, Thursday, January 22. See guest list below.
Guests for tomorrow, Thursday, January 22, include: Demis Hassabis, DeepMind CEO, Dara Khosrowshahi, Uber CEO, Arthur Mensch, Mistral AI CEO, David Solomon, Goldman Sachs Chairman & CEO, Christian Ulbrich, JLL CEO & President, Bret Taylor, Sierra Co-Founder & CEO, Carl Eschenbach, Workday CEO, Will.i.Am, Philanthropist & Entertainer, Charles Scharf, Wells Fargo CEO, Mike Fries, Liberty Global CEO, Paul Hudson, Sanofi CEO, Michael Dell, Dell Technologies Chairman & CEO, Laura Alber, Williams-Sonoma CEO & President, Jamie Salter, Authentic Brands CEO.
