Wells Fargo CEO Charlie Scharf believes U.S. economic growth is poised to exceed market expectations, expressing strong optimism about the country’s financial trajectory.
“It’s more likely than not that growth will be stronger than people expect,” Scharf said during an interview with CNBC in Davos for the World Economic Forum.
The CEO expressed confidence in the U.S. market, noting that the growth trajectory is “really, really good” for the largely domestic-focused company (WFC).
On interest rates, Scharf predicted they “likely will go lower,” which he views as positive for the economy.
Scharf also addressed the Trump administration’s proposal to potentially cap credit card interest rates at 10%. While acknowledging that the president “has not suggested that rates get capped forever across the board,” he emphasized the need for caution when implementing such policies in the credit market.
The Wells Fargo CEO warned against sweeping price controls that could harm consumers who rely on credit access. “10% for everyone overall, I think, would be a real problem,” Scharf said, adding that policymakers should avoid “artificial price controls that could be harmful at a period of time when it matters most to Americans.”
Scharf also weighed in on housing policy, arguing that policies should not make it more advantageous for institutions to purchase homes compared to individual buyers.
“We shouldn’t have a policy that where it is more affordable for an institution to buy something than an individual,” he said.
Lastly, regarding the idea of allowing Americans to use 401(k) funds for home down payments, Scharf called the concept “super interesting” but cautioned that “the devil’s in the details” when it comes to preserving long-term investment integrity.