Jamie Dimon calls Trump credit card cap economic disaster

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Donald Trump has repeatedly stated his desire for Congress to impose limits on credit card interest rates, citing what he describes as excessive bank profits.
Another such statement by Trump in Davos prompted a response from Jamie Dimon, who called the idea an “economic disaster.”
The largest U.S. banks are seeking to prevent interest rate caps by proposing compromise solutions and warning of potential lawsuits if the measure is ultimately adopted.

After Trump once again raised the idea of limiting credit card interest rates during his speech at the World Economic Forum in Davos, Dimon called the proposal an “economic disaster,” arguing that such a cap would deprive most Americans of borrowing options. He said that roughly 80% of the U.S. population relies on credit cards as a “financial safety net” during difficult times.

Previously, Trump described the credit card business as excessively profitable, claiming banks earn margins of over 50%. He argued that high credit card bills make it harder for families to save for home purchases, calling this a major obstacle to financial well-being.

In Davos, Trump said he wants Congress to approve a 10% cap on credit card interest rates, to be implemented for one year.

Testing in select states instead of nationwide rollout

Dimon предложил альтернативный подход. He said the government should first test the interest rate cap in just two states—Vermont and Massachusetts—to see the real-world impact before rolling it out nationwide. His suggestion drew laughter from the audience, likely because senators from those states, Bernie Sanders and Elizabeth Warren, have previously advocated for such caps.

According to Cryptopolitan, the JPMorgan chief painted a bleak picture of the potential consequences. He said the loudest complaints would not come from credit card issuers themselves, but from restaurants, retailers, travel companies, schools, and local governments, as consumers begin missing payments on other bills, including essential services like water.

Dimon also said JPMorgan plans to provide the administration with more detailed analysis of the impact of a rate cap. During an earnings call last week, the bank’s CFO suggested JPMorgan could consider legal action if the government issues poorly justified orders that radically alter its business.

Banks charge higher rates on credit cards than on other loans because card debt carries greater risk. Unlike mortgages or auto loans, credit cards are unsecured, meaning lenders cannot seize collateral in case of default, leading to higher losses.

Some analysts believe credit card companies could attempt a compromise by launching new products, such as lower-rate cards for specific customers, no-rewards cards capped at 10%, or cards with lower borrowing limits.

Against this backdrop, congressional approval of a nationwide credit card rate cap—as proposed by Trump—still appears unlikely. Republicans and Democrats remain divided, while banks warn of lawsuits and unintended economic consequences.

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