JPMorgan CEO Jamie Dimon Criticizes Trump’s 10% Credit Card Cap

JPMorgan Chase CEO Jamie Dimon has voiced serious concerns regarding President Trump’s proposal for a 10% cap on credit card interest rates. Speaking at the World Economic Forum in Davos, Switzerland, Dimon warned that such a policy could jeopardize the financial wellbeing of many Americans.

Economic Implications of the Credit Card Cap

During his interview, Dimon highlighted the potential fallout of the proposed cap. He stated that if implemented, it could force banks to eliminate credit lines for a significant portion of the population, ultimately harming the economy. Dimon indicated that while JPMorgan might endure the consequences, a drastic reduction in credit card business would likely ensue.

Impact on American Consumers

Dimon estimated that up to 80% of Americans could experience a loss of credit access due to the interest rate cap. He noted that the proposal is largely favored by Democratic lawmakers, specifically suggesting a trial implementation in two states: Vermont and Massachusetts. “They should force all banks to do it in those two states and see what happens,” he remarked.

Trump’s Justification for the Cap

President Trump has argued that the cap would provide relief for consumers whom he claims are being overcharged by credit card companies that impose rates between 20% and 30%. In addition to this proposed cap, he recently announced measures to improve housing affordability, including a $200 billion mortgage bond-buying plan and restrictions on institutional investors purchasing single-family homes.

Industry Reaction

• Dimon and other banking executives, including Bank of America CEO Brian Moynihan, have expressed strong opposition to the cap.
• JPMorgan’s CFO, Jeremy Barnum, called the cap detrimental to both consumers and the overall economy.
• Banking groups warn that such government-imposed limits would likely restrict credit approvals, affecting low and moderate-income consumers.
• The new credit cards introduced by New York-based startup Bilt, featuring a 10% APR for the next year, have emerged in response to Trump’s discussions.

While proponents of the cap argue that it would ease the financial burdens of consumers facing rising inflation, Dimon and other financial leaders caution that the long-term effects may be harmful. JPMorgan has committed to conducting a thorough analysis of the proposal’s implications to present to government officials.