JPMorgan Chase head Jamie Dimon reiterated his caution on Wednesday that President Donald Trump’s plan to impose a temporary 10% ceiling on credit card interest rates could have severe economic repercussions.
The comments, made at the World Economic Forum in Davos, follow President Trump’s renewed call for congressional approval of the measure as he seeks to alleviate voters’ cost-of-living pressures before the U.S. congressional elections.
President Trump, responding to rising concerns over household debt, earlier this month urged Congress to adopt a one-year limit on credit card rates starting January 20. Trump specifically cited high profit margins among credit card issuers and identified rising card debt as a major obstacle for Americans attempting to save for home purchases. He reiterated the proposal this week but did not provide specifics on enforcement or legal pathways for implementation.
At the Davos forum, Dimon argued that instituting the cap would significantly restrict credit access, potentially affecting up to 80% of Americans who depend on credit cards as a financial fallback. He further stated that the fallout would extend beyond lenders, impacting sectors such as retail, hospitality, travel, education, and even essential municipal services, as consumers could struggle to keep up with payments.
Currently, average credit card interest rates stand at nearly 24%, according to LendingTree, with rates as high as 36% for individuals with lower credit ratings. Industry representatives have voiced strong opposition to the president’s proposal, maintaining that such restrictions could constrain borrowing options for everyday Americans.
Market analysts emphasized that legislative action would be required to enact the cap and noted limited support in Congress, as lawmakers remain divided over the issue.
No timeline has been set for bringing the proposal into effect, and details regarding its implementation have not been clarified.
