JPMorgan Chase CEO Jamie Dimon has issued a strong warning about a proposed cap on credit card interest rates, calling it a potential “economic disaster” for the United States.
The controversy stems from President Donald Trump’s recent push to limit credit card interest rates to 10% for one year. Trump announced the idea in early January 2026 via a post on Truth Social, stating that effective January 20, he was calling for the cap to prevent Americans from being “ripped off” by high rates, which often reach 20% to 30% or more. The proposal aims to ease financial pressures on consumers amid ongoing concerns about the cost of living, especially as midterm elections approach.
Speaking at the World Economic Forum in Davos, Switzerland, on January 21, 2026, Dimon argued that such a cap would severely restrict access to credit. He estimated that it would remove credit availability for about 80% of Americans, who rely on credit cards as a key backup source of funds for emergencies and daily needs.
“It would remove credit from 80% of Americans, and that is their back-up credit,” Dimon said. He added that the real pain would not fall on credit card companies like JPMorgan, which could adapt or survive the change. Instead, he predicted hardship for restaurants, retailers, travel companies, schools, and even municipalities, as people might struggle to make payments for essentials like water bills or other services if credit tightens.
Dimon suggested a practical test of the policy: implement the 10% cap in just two states—Vermont and Massachusetts—and observe the results. This idea drew laughs from the Davos audience. The states are notable because they are represented by prominent advocates for rate caps: Senator Bernie Sanders of Vermont and Senator Elizabeth Warren of Massachusetts, both of whom have long supported limiting credit card interest rates.
The banking industry has broadly opposed the proposal. Groups argue that credit cards are unsecured loans, meaning banks charge higher rates to offset the risk of defaults. A forced cap could lead lenders to approve cards only for high-income customers with excellent credit scores, reduce credit limits, or eliminate popular rewards programs funded by interest income. Some banks have already explored alternatives, like offering no-frills cards at lower rates or targeted discounts.
Other banking leaders share Dimon’s concerns. Citigroup CEO Jane Fraser stated in a separate Davos interview that while affordability is important, capping rates “would not be good for the US economy.” JPMorgan’s CFO Jeremy Barnum previously indicated that the company might consider all options, including legal challenges, if such directives threaten its business without strong justification.
Wall Street analysts remain skeptical that a nationwide cap would pass Congress, given past failed attempts and partisan divides. Previous efforts to cap rates federally have stalled, partly because states lost authority over credit card rates after a 1978 Supreme Court ruling.
Trump has doubled down on the idea, urging Congress to act, but details on implementation remain limited. Some companies have responded with voluntary moves, such as one startup introducing a card with a 10% APR for a promotional period.
Dimon emphasized that JPMorgan plans to provide detailed analysis to policymakers on the proposal’s potential effects, having shared some initial thoughts already.
The debate highlights tensions between consumer relief efforts and the realities of credit markets, with major banks warning that good intentions could backfire on everyday Americans who depend on flexible credit.
JPMorgan Chase CEO Jamie Dimon has issued a strong warning about a proposed cap on credit card interest rates, calling it a potential “economic disaster” for the United States.
The controversy stems from President Donald Trump’s recent push to limit credit card interest rates to 10% for one year. Trump announced the idea in early January 2026 via a post on Truth Social, stating that effective January 20, he was calling for the cap to prevent Americans from being “ripped off” by high rates, which often reach 20% to 30% or more. The proposal aims to ease financial pressures on consumers amid ongoing concerns about the cost of living, especially as midterm elections approach.
Speaking at the World Economic Forum in Davos, Switzerland, on January 21, 2026, Dimon argued that such a cap would severely restrict access to credit. He estimated that it would remove credit availability for about 80% of Americans, who rely on credit cards as a key backup source of funds for emergencies and daily needs.
“It would remove credit from 80% of Americans, and that is their back-up credit,” Dimon said. He added that the real pain would not fall on credit card companies like JPMorgan, which could adapt or survive the change. Instead, he predicted hardship for restaurants, retailers, travel companies, schools, and even municipalities, as people might struggle to make payments for essentials like water bills or other services if credit tightens.
Dimon suggested a practical test of the policy: implement the 10% cap in just two states—Vermont and Massachusetts—and observe the results. This idea drew laughs from the Davos audience. The states are notable because they are represented by prominent advocates for rate caps: Senator Bernie Sanders of Vermont and Senator Elizabeth Warren of Massachusetts, both of whom have long supported limiting credit card interest rates.
The banking industry has broadly opposed the proposal. Groups argue that credit cards are unsecured loans, meaning banks charge higher rates to offset the risk of defaults. A forced cap could lead lenders to approve cards only for high-income customers with excellent credit scores, reduce credit limits, or eliminate popular rewards programs funded by interest income. Some banks have already explored alternatives, like offering no-frills cards at lower rates or targeted discounts.
Other banking leaders share Dimon’s concerns. Citigroup CEO Jane Fraser stated in a separate Davos interview that while affordability is important, capping rates “would not be good for the US economy.” JPMorgan’s CFO Jeremy Barnum previously indicated that the company might consider all options, including legal challenges, if such directives threaten its business without strong justification.
Wall Street analysts remain skeptical that a nationwide cap would pass Congress, given past failed attempts and partisan divides. Previous efforts to cap rates federally have stalled, partly because states lost authority over credit card rates after a 1978 Supreme Court ruling.
Trump has doubled down on the idea, urging Congress to act, but details on implementation remain limited. Some companies have responded with voluntary moves, such as one startup introducing a card with a 10% APR for a promotional period.
Dimon emphasized that JPMorgan plans to provide detailed analysis to policymakers on the proposal’s potential effects, having shared some initial thoughts already.
The debate highlights tensions between consumer relief efforts and the realities of credit markets, with major banks warning that good intentions could backfire on everyday Americans who depend on flexible credit.
