JP Morgan CEO Jamie Dimon has warned of an “economic disaster” if Trump’s 10% cap on credit card interest rates goes into effect. He argued that the move could shut millions of Americans out of the credit card system. “Eighty per cent of Americans will lose access to credit if this moves forward,” Dimon said.

Trump took to Trust Social, announcing that his administration would put a cap of 10% on credit card interest rates from January 20. However, he did not provide further details as to how the policy would take shape. His administration said that they will no longer let the American people be “ripped off” by credit card companies. However, JP Morgan’s CEO warned that the credit card cap would be an “economic disaster.”

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The JP Morgan head explained that the fallout would cause a ripple effect across all sectors in the US. “People crying the most will not be the credit card companies, it will be the restaurants, retailers, travel companies, the schools, the municipalities,” he said. However, the Trump administration argued that keeping a cap on credit card interest rates would improve affordability for everyday consumers.

JP Morgan & Other Leading Banks Express Dissatisfaction with Trump’s Credit Card Interest Rate Cap

Trump had promised to put a cap on credit card interest rates ahead of his election campaign in 2024. He faced criticism for not pushing it through during his first term in office. This time around, the US President is powering through to keep his campaign promise. However, leading banks like JP Morgan and Wall Street experts remain unhappy with the decision.

Apart from JP Morgan, US Bancorp CEO Gunjan Kedia stressed that the blanket cap on credit card interest rate would hurt the economy. “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,” Kedia told analysts.