Trump’s Credit Card Plan ‘Would be a Disaster,’ Says JP Morgan CEO

US President Donald Trump’s plan to cap credit card interest rates at 10% has been described as “an economic disaster” by JPMorgan Chase CEO Jamie Dimon.

Dimon warned that the proposal would restrict access to credit for most Americans and negatively impact restaurants, retailers, travel companies, schools, and municipalities.

Trump suggested on Truth Social that credit card interest rates be limited to 10% for one year starting January 20, 2026. The plan has not yet been implemented, and details on enforcement or legality remain unclear.

Speaking at the World Economic Forum in Davos, Dimon said, “It would be an economic disaster… we would survive it, but it would be drastic for the majority of Americans.” He explained that about 80% of Americans rely on credit cards as backup financial resources.

In a pointed remark at senators Bernie Sanders and Elizabeth Warren, who have backed interest rate caps, Dimon suggested that if Trump proceeds, the measure should first be tested in Vermont and Massachusetts. He added, “The people affected most won’t be the credit card companies. It will be restaurants, retailers, travel firms, schools, and local governments as people struggle to pay bills.”

Other senior JPMorgan executives have also warned that a 10% cap could severely limit credit access and harm consumers, echoing broader criticism of the plan.

Trump defended his proposal in a CNBC interview, saying, “I respect credit card companies—they make a lot of money—but they need to give people a break.”

US banking associations have argued that such a cap would make credit harder to obtain and could be “devastating” for millions of families and small businesses. Currently, the average US credit card interest rate is around 20%.

Trump first outlined the 10% interest rate cap during his 2024 presidential campaign. On January 13, he reiterated it on social media: “Effective January 20, 2026, I am calling for a one-year cap on Credit Card Interest Rates of 10%. The American public will no longer be ‘ripped off’ by credit card companies.”

The announcement caused investor concern, leading to drops in shares of American Express, Visa, Mastercard, and Barclays in the UK.