President Donald Trump’s proposal to cap credit card interest rates at 10 percent has continued to draw sharp reactions from global financial leaders, with JPMorgan Chase CEO Jamie Dimon warning that the policy could destabilise the US credit market and negatively impact the wider economy.
Eko Hot News reports that Dimon, speaking at the World Economic Forum in Davos, described the proposed interest rate cap as an “economic disaster,” arguing that it could severely limit access to credit for millions of Americans despite its consumer-friendly appeal.
According to the JPMorgan chief, credit card lending involves high operational costs, fraud risks, defaults, and regulatory expenses, which are currently absorbed through interest rates. He warned that enforcing a 10 percent cap would make it difficult for banks to sustain credit card operations, forcing lenders to tighten credit standards or withdraw services entirely.
Dimon cautioned that the policy could disproportionately affect low- and middle-income earners who rely heavily on credit cards for everyday expenses. He estimated that up to 80 percent of Americans could lose access to credit if lenders are unable to profitably offer card services under the proposed cap.
He further noted that reduced credit availability would ripple through the economy, affecting consumer spending, small businesses, retailers, hospitality operators, and even public institutions that depend on credit-driven economic activity. Dimon added that while large banks like JPMorgan may adjust due to scale, smaller lenders could be pushed out of the market.
The JPMorgan CEO suggested that if the policy is to be considered seriously, it should first be tested on a limited scale to assess its real-world impact. His comments reportedly drew strong reactions from industry stakeholders attending the forum.
President Trump’s proposal has gained attention amid widespread concern over high borrowing costs and rising household debt in the United States. Credit card interest rates have remained elevated, intensifying calls for stronger consumer protection measures.
However, financial analysts and banking executives warn that price controls in lending could produce unintended consequences, including reduced competition and increased reliance on informal or high-fee credit alternatives.
As discussions continue, Dimon’s remarks have amplified concerns within the financial sector that aggressive rate caps, though well-intentioned, could undermine financial stability and ultimately harm consumers.
