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Banking leader slams proposed interest rate limit
JPMorgan Chase CEO Jamie Dimon has called Donald Trump's plan to cap credit card interest rates at 10% an "economic disaster," warning it would cut off credit for most Americans and harm businesses.
Trump's proposal and industry backlash
Earlier this month, the U.S. president announced on Truth Social that credit card interest rates should be limited to 10% for one year starting January 20, 2026. The plan lacks details on implementation or legal feasibility.
At the World Economic Forum in Davos, Dimon criticized the idea, stating it would eliminate credit access for 80% of Americans who rely on cards as "backup credit."
"It would be an economic disaster, and I'm not exaggerating. Our business would survive, but restaurants, retailers, travel firms, and schools would suffer when people miss payments."
Jamie Dimon, JPMorgan Chase CEO
Political jabs and banking sector concerns
Dimon took a swipe at Senators Bernie Sanders and Elizabeth Warren-both advocates of rate caps-suggesting the policy should first be tested in their home states of Vermont and Massachusetts.
Five major U.S. banking associations issued a joint statement warning the cap would push consumers toward "less regulated, more costly alternatives" and reduce lending limits, close high-risk accounts, and shrink rewards programs.
Trump defends plan despite criticism
In a CNBC interview Wednesday, Trump reiterated his stance, claiming credit card companies-some of which he called "friends"-make excessive profits and should "give people a break."
The average U.S. credit card interest rate currently hovers around 20%. Trump first floated the 10% cap during his 2024 presidential campaign, framing it as protection for consumers.
"Effective January 20, 2026, I, as President of the United States, am calling for a one-year cap on credit card interest rates of 10%. We will no longer let the American public be 'ripped off' by credit card companies."
Donald Trump, Truth Social post, January 13
Market reaction and broader implications
Trump's announcement rattled investors, with shares of American Express, Visa, and Mastercard dropping. UK-based Barclays also saw a decline.
Banking groups argue the cap would disproportionately hurt low-income families and small businesses by restricting credit availability, calling it "devastating" for millions.
