President Trump announced on Trust Social a plan to cap credit card interest rates at 10% starting January 20. He said the move would stop Americans being “ripped off” and framed it as an affordability measure (stated).
JP Morgan CEO Jamie Dimon warned the cap would produce an “economic disaster” and shut many people out of credit. He added, “Eighty per cent of Americans will lose access to credit if this moves forward,” as his assessment.
Dimon said the fallout would spread across the economy and harm services and local budgets. He warned, “People crying the most will not be the credit card companies, it will be the restaurants, retailers, travel companies, the schools, the municipalities,” describing broad effects.
US Bancorp CEO Gunjan Kedia told analysts a blanket cap would hurt customers and lenders. She said, “Our estimate is that 90-plus per cent of our clients will see a detrimental impact if there was an across-the-board 10% rate cap on credit cards,” summarizing the bank’s view.
The cap was a 2024 campaign promise from Trump, and critics noted he did not implement it during his first term. (Ed. note: The administration has not released detailed implementation plans.)
