Bank of America CEO Brian Moynihan warned that President Donald Trump's proposed 10% cap on credit card interest rates could produce unintended consequences. Speaking at the World Economic Forum in Davos, Moynihan said such a cap might have an "equal but opposite reaction," suggesting it could tighten credit availability for consumers.

The discussion centers on broader affordability issues facing Americans. Moynihan noted his bank is working with the White House to address these challenges. A hard rate cap, while politically appealing, risks disrupting the lending model banks use to underwrite cards for consumers with less-than-perfect credit histories.

This warning from a major bank CEO adds weight to the debate over consumer financial protection. If enacted, the cap could reshape the credit card market, potentially limiting products for riskier borrowers and shifting costs elsewhere. Investors will watch how regulatory pressures affect bank profitability and consumer lending trends.