Capital One CEO says that American consumers are in ‘good size’, but are ‘worrying signs’

Capital One CEO Richard Fairbank shared his perspective on Tuesday how American consumer financial institutions were catching up during the quarterly calls.

He was asked an analyst as to how the status of the American consumer is seen in the light of concerns in the market around the tariff of Trump administration.

Fairbank said that American consumer “remains a source of strength” In economy“Adding this” was true for almost any metric we see. ,

“Consumer loans serving burden remain stable near pre-political levels,” he said. “In our card portfolio, we are improving delinquency rates and improving less delayed entries, and payment rates are improving on year-on-year basis.”

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“Some pockets of consumers are feeling pressure from the cumulative effects and high interest rates of inflation,” Fairbank said, “But he admittedly believed that the American consumer is” in good shape “.

Capital a CEO It is noted that customers’ stake was running somewhat from pre-political levels on their credit card, meaning that inflation and interest rates were weighing on some.

When it came Revolved ratesFairbank stated that they had “stabilized in the last one year” but “were below the level of the pre-glory for our major products and segments,” something he said “was” there was another healthy indicator. ”

He also discussed the trends that Capital One saw in consumer expenses during the first quarter.

Fairbank told analysts and investors, “The spending trends at the end of the first quarter were largely stable.” “In recent weeks, we have started looking at the increase in customer development per customer development in our customer segments.”

He partially attributed the later date of Easter this year.

“We have seen retail expenses in the last few weeks, especially electronics recently,” Fairbank said.

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He said that, probably in response to tariffs, may come from consumers already shopping, but “we have to see over time”.

Meanwhile, according to Fairbank, “T&E” and the increase in airfare have slightly slowed down.

“While this is a hurry, when we look at industry figures, auto procurement is likely to move forward, as consumers are trying to get ahead of tariff effects. And we continue to monitor our application and versions,” he also said. “I think there are some initial signs that auction prices are rising more than seasonal criteria. It is all very early, but it will be what we see right on the margin.”

President Donald Trump unveiled 25% tariffs on imported passenger vehicles and light trucks last month, as well as a levy of the same size on some Auto part import,

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The tariff on imported vehicles and trucks came into force on 3 April. Meanwhile, a targeting auto parts are to roll out at the beginning of the next month.

In early April, Trump established a 90-day stagnation on mutual tariffs and opted to apply 10% duty during that period, which did not retaliate against the US for mutual tariffs. At the same time, he raised tariffs to 145%on China.