Wells Fargo CEO Charlie Scharf on state of the economy, credit card rate cap and company outlook

Summary

Charlie Scharf, CEO of Wells Fargo, joins Squawk Box from Davos to discuss the economy, Fed leadership, interest rates, credit card rate caps, housing policy, and Wells Fargo's outlook. He says growth looks strong, rates likely move lower, and defends the credit card business against a proposed cap. He highlights Wells Fargo's post-asset-cap turnaround, balance sheet growth, and plans to expand the investment bank.

• Scharf says U.S. growth is likely stronger than expected and lower rates would be good for markets.
• He is positive on Wells Fargo's ability to compete after the asset cap was lifted.
• Wells Fargo is growing loans, deposits, inventories, and financing while maintaining risk discipline.
• He likes the credit card business and downplays the proposed one-year 10% cap as similar to promotional rates.
• He says the investment bank is a major growth opportunity with competitive advantages in lending and treasury services.
• He calls 401(k) home down payment proposals interesting but dependent on details.
• He declines to take a strong view on institutional home buyers and says policy should not favor institutions over individuals.