Trump Credit Card Interest Rate Cap 2026: Jamie Dimon Warns of 'Economic Disaster'
JPMorgan CEO Jamie Dimon calls Trump's 10% credit card interest rate cap an 'economic disaster' at Davos 2026. Experts warn 80% of Americans could lose credit access.
An unlikely alliance is forming in Washington, but Wall Street is sounding the alarm. JPMorgan Chase CEO Jamie Dimon didn't mince words at Davos on Jan 21, 2026, labeling President Donald Trump’s proposed 10 percent cap on credit card interest rates an imminent 'economic disaster'.
Trump Credit Card Interest Rate Cap 2026: The $100 Billion Collision
According to Reuters, Dimon argued that such a cap would effectively remove credit access for 80 percent of Americans who rely on it as a financial backup. While Trump claims the move would save borrowers roughly $100bn a year, banking executives warn of a massive contraction in lending.
It would remove credit from 80 percent of Americans... People crying the most will not be the credit card companies. It will be the restaurants, retailers, and schools because people will miss their payments.
Political Gridlock and Populist Partnerships
The proposal has created strange bedfellows. Progressive Senator Elizabeth Warren recently indicated a willingness to work with the president on this initiative, echoing a long-standing bill by Senator Bernie Sanders. However, Republican House Speaker Mike Johnson has expressed skepticism, citing potential 'negative secondary effects' on the economy.
On Wall Street, the reaction was mixed. Mastercard dropped 1.1% and Visa fell 1.7%, while American Express managed a 1.9% gain. Analysts suggest that the legislation remains unlikely to pass anytime soon, giving the president a convenient scapegoat in Congress if the promise isn't delivered.
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