Capital One CEO praises US consumer resilience, but sees “anxiety signs”
Stew Leonard’s wine and spirits President Blake Leonard said on the impact of tariffs on the alcohol industry and consumers on “Morning with Maria.”
Capital One CEO Richard Fairbank shared his views on Tuesday on how American consumers support it during financial institutions’ quarterly revenue calls.
He was asked by analysts how capital views the state of American consumers in light of market concerns surrounding the Trump administration’s tariffs.
Fairbank said US consumers are “the source of strength.” In the economy“It’s been added” applies to almost every metric we see.
Capital One CEO Richard Fairbank shared his views on Tuesday on how American consumers support it during financial institutions’ quarterly revenue calls. (Joe Raedle / Getty Images / Getty Images)
“The burdensome consumer debt remains stable near pre-pandemic levels,” he said. “In our card portfolio, the decline in late arrears and late entries has improved, and payment rates have improved year-over-year.”
Fairbank said “some consumer pockets are feeling pressured by the cumulative effects of inflation and higher interest rates,” but he overall believed that US consumers were “in a good shape.”
Capital One CEO The share of customers who made minimum payments via credit card meant “it was slightly above pre-pandemic levels.”
When it comes Rotation rateFairbank said they “have been stable over the past year” but “below below the level below the prerequisites of key products and segments.”
He also discussed trends Capital saw in first quarter consumer spending.
“The spending trend was largely stable until the end of the first quarter,” Fairbank told analysts and investors. “In recent weeks, we have begun to see an increase in spending growth per customer compared to this time last year across our customer segment.”
He also discussed trends Capital saw in first quarter consumer spending. (Kena Betancur / ViewPress / Getty Images)
He partially attributed it to the later part of Easter this year.
“We’ve also seen recent retail spending, particularly electronics, over the past few weeks,” Fairbank reported.
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It could potentially come from consumers who buy early in response to tariffs, he said, but “we’ll have to take the time to watch.”
Meanwhile, according to Fairbank, the increase in “T&E” and airfare spending has been a bit slower.
“At the moment, looking at industry data, it looks like consumers are going to move forward with the impact of tariffs, so they’re going to make a bit more progress with car purchases. “I also think there’s an early indication that auction prices are rising more than seasonal norms. All of this is very early, but that’s what we’re looking at in margins.”
Last month, President Donald Trump announced 25% tariffs on imported passenger cars and light trucks, and announced the collection of the same size of a certain size. Importing automatic parts.
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Customs duties on imported vehicles and trucks came into effect on April 3rd. Meanwhile, those targeting automotive parts are scheduled to be rolled out early next month.
Last month, President Donald Trump announced 25% tariffs on imported passenger cars and light trucks. (Francis Chung/Politico/Bloomberg via Getty Images)
In early April, Trump enacted a 90-day hiatus on mutual tariffs and chose to apply a 10% obligation to countries that had not retaliated against the US for mutual tariffs during that period. At the same time, he raised China’s tariffs to 145%.