Dimon: Trump’s 10% Credit Cap Would Cause Economic Disaster.

Trump proposes 10% cap on credit-card interest starting January 20; bank CEOs warn it could cut off credit for most Americans and ripple through restaurants, retailers, travel companies and municipalities.

  • Donald Trump announced a plan to cap credit card interest rates at 10% starting January 20.
  • Jamie Dimon, CEO of JP Morgan, called the proposal an “economic disaster” and said, “Eighty per cent of Americans will lose access to credit if this moves forward.”
  • Bank leaders warn the cap could push costs and credit restrictions into restaurants, retailers, travel companies, schools and municipalities.
  • Gunjan Kedia, CEO of US Bancorp, said “90-plus per cent of our clients will see a detrimental impact” from an across-the-board 10% cap.
  • The administration said the cap aims to improve affordability and stop Americans being “ripped off.”

Donald Trump announced on Trust Social that his administration will set a 10% cap on credit card interest rates effective January 20, though he did not provide detailed implementation plans. The administration said the move would prevent Americans from being “ripped off.” (See the announcement here.)

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Jamie Dimon, CEO of JP Morgan, warned the cap would be an “economic disaster” and said, “Eighty per cent of Americans will lose access to credit if this moves forward.” He said fallout would Ripple across the economy and hurt many businesses beyond banks.

Dimon said the groups that would suffer most include restaurants, retailers, travel companies, schools and municipalities, and that those sectors would feel the credit squeeze first. He framed the impact as broader than losses to credit card firms alone.

Other bank executives expressed similar concerns. Gunjan Kedia, CEO of US Bancorp, told analysts, “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.” Leading banks and Wall Street analysts signaled broad dissatisfaction with the proposed blanket cap.

The administration has argued that a 10% cap would make credit more affordable for everyday consumers. Officials have not released detailed rules or implementation timelines for how the cap would be enforced or how lenders would respond.

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