In the snowy corridors of Davos, Wells Fargo CEO Charlie Scharf delivered a bullish assessment of the U.S. economy during a Squawk Box interview, declaring that “everything that we see now is really, really good.” Speaking amid global leaders at the World Economic Forum, Mr. Scharf projected growth stronger than consensus forecasts, crediting low inflation at 1.2% alongside robust expansion. This optimism comes as Wells Fargo emerges from years of regulatory constraints, with its balance sheet expanding 11% since the asset cap lift.

“It’s more likely than not that growth will be stronger than people expect,” Mr. Scharf told CNBC, emphasizing the bank’s U.S.-centric operations. His remarks contrast with earlier caution; in September 2025, he flagged downside risks after JPMorgan Chase CEO Jamie Dimon highlighted weakening jobs data (CNBC). Recent data has shifted the narrative, with Mr. Scharf noting resilience in consumer and business credit during a January 2026 earnings call.

Inflation’s retreat has fueled debates on Federal Reserve policy. Mr. Scharf expressed enthusiasm for potential Fed chair candidates, stating, “I care a lot, but thrilled with the choices that are on the table. I think they all make great choices.” He anticipates rates trending lower, a boon for borrowers, though the extent hinges on incoming data—a view echoed by markets pricing in further cuts.

Growth Momentum Builds

Wells Fargo’s turnaround under Mr. Scharf, who assumed the role in 2019 amid scandal fallout, has been methodical. The bank reported a balance sheet surge post-asset cap removal, actively soliciting deposits previously turned away. “We’re growing loans again,” Mr. Scharf said, highlighting inventory financing and corporate relationships. Fourth-quarter 2025 results showed profit misses due to $612 million in severance costs for efficiency drives, yet core businesses expanded (Reuters).

Investment banking stands out as a growth engine. Mr. Scharf praised executives Doug Braunstein, Fernando Rivas, and Tim O’Hara for elevating the unit, which facilitated major deals like a large bridge loan for Netflix and financing for Quikret. “The investment bank is one of the great opportunities that we have,” he noted, aiming to serve firms of all sizes without compromising risk standards. Wall Street anticipates a busy 2026 for dealmaking after 2025’s windfall (Reuters).

The bank’s workforce is streamlining, with further declines expected as efficiency takes priority. Mr. Scharf tempered share repurchase expectations for 2026, signaling disciplined capital allocation amid post-cap expansion. Shares dipped 4.6% post-earnings, reflecting high market barometers despite strategic progress.

Rate Cap Stirs Banking Concerns

President Trump’s push for a 10% credit card interest rate cap, floated as a one-year measure, drew measured pushback from Mr. Scharf. “We just got to be very focused on what we’re trying to solve,” he cautioned, warning against artificial price controls that could harm consumers most in need. Wells Fargo offers products below 10% via introductory promotions, but a broad cap risks credit availability, he implied.

Jamie Dimon labeled the idea dangerous, a sentiment Mr. Scharf shares indirectly. U.S. Bancorp CEO Gunjan Kedia warned of broad economic hits, noting impacts on clients (Reuters). Mr. Scharf praised the administration’s outcome focus: “They engage and they want to get to the right answer.” Trump doubled down in recent remarks, tying it to affordability amid low inflation.

Credit quality remains robust, per Mr. Scharf’s October 2025 comments: no cracks in the system despite loan loss worries weighing on stocks (Reuters). Recent earnings reaffirmed customer resilience, with close portfolio monitoring.

Housing Policies in Flux

Housing affordability drew Mr. Scharf’s scrutiny, particularly institutional buying. He opposed tax or policy tilts favoring corporations like Blackstone over individuals: “We shouldn’t have a policy where it is more affordable for an institution to buy something than an individual.” Trump’s explicit targeting of big buyers aims to curb price inflation.

Rumors of allowing 401(k) withdrawals for down payments intrigued him. “It’s super interesting… under the right circumstances,” Mr. Scharf said, stressing long-term lockups and concentration risks. Details matter, but it could unlock homeownership without derailing retirement savings—a nod to scuttlebutt at Davos.

Wells Fargo, a top mortgage originator, eyes these shifts warily. Broader economic strength, with AI and high-income consumers driving activity per Lazard CEO Peter Orszag on Squawk Box, supports housing demand.

Investment Banking Ambitions

Wells Fargo’s investment bank, long under the radar, is scaling aggressively. Mr. Scharf envisions broader public market access, private credit, and advisory from its lending base. “We’ve always been in the business, but we’ve always wanted to be below the radar screen,” he admitted, now committing to growth. Recent hires and deals position it as a contender.

Competitive edges include treasury services and lending volume. Unlike failed entrants, Wells avoids high-risk niches. Analysts hail Mr. Scharf’s strategy, dubbing him Wall Street’s new titan post-cap (FinancialContent). A 2026 deal pipeline looms large.

Mr. Scharf credits thousands of employees for the revival, from 3,162-page remediation plans in 2019 to current momentum (Fortune). The bank feels “great” competing again.

Forward Risks and Opportunities

Despite optimism, Mr. Scharf remains vigilant. Earlier 2025 workforce cuts continue, with AI as a “positive reality” per his December remarks (Banking Dive). Trump’s Fed commentary is “entitled,” he said in September, backing central bank independence (CNBC).

Posts on X from Squawk Box captured the Davos buzz: “Everything that we see now is really, really good,” says $WFC Charlie Scharf of the U.S. economy. “It’s more likely than not that growth will be stronger than people expect.” Economy watchers note bifurcation, with AI fueling upside.

Wells Fargo’s path ahead blends caution and ambition, navigating policy twists in a resilient expansion.