Trump bank card plan could be ‘catastrophe’, JP Morgan boss Dimon warns | EUROtoday

US President Donald Trump’s proposal to cap bank card prices could be “an economic disaster”, the boss of one of many world’s greatest banks has warned.

JPMorgan Chase chief government Jamie Dimon stated the plan would take away credit score from nearly all of Americans and hit eating places, retailers, journey companies and colleges.

Trump this month wrote on Truth Social that rates of interest on bank cards needs to be restricted to 10% for one 12 months from 20 January.

The cap has but to return into drive and the president didn’t say the way it is likely to be launched or whether or not such a transfer could be legally enforceable.

Asked concerning the cap on the World Economic Forum (WEF) in Davos, Dimon stated: “It would be an economic disaster, and I’m not making that up because our business… we would survive it by the way.”

He stated capping rates of interest on bank cards at Trump’s steered degree of 10% could be “drastic” and reduce entry to credit score for 80% of Americans, including that it’s “their back up credit”.

In a dig at senators Bernie Sanders and Elizabeth Warren, who’ve supported such a cap, he stated if Trump did go forward with the plan, it needs to be trialled of their respective states of Vermont and Massachusetts.

Dimon added: “The people crying the most won’t be the credit card companies, it will be the restaurants, the retailers, the travel companies, the schools, the municipalities because people will miss their water payments.”

Top JP Morgan executives together with Dimon had beforehand warned {that a} 10% rate of interest cap would severely damage customers, including their voices to criticism of the proposal.

Trump doubled down on his suggestion on Wednesday, telling the enterprise information channel CNBC: “I’ve had calls from credit card companies, people that are friends of mine, actually, and I treat them good.

“I respect them significantly, however they make some huge cash, they acquired to provide individuals a break.”

US banking associations have said capping interest rates would make it harder for people to access credit and be “devastating” for millions of families and small businesses.

The average interest rate for credit cards in the US is roughly 20%.

In his statement on social media on 13 January, Trump called for a 10% limit, reviving an idea he put forward during his 2024 presidential election campaign.

“Effective January 20, 2026, I, as President of the United States, am calling for a one 12 months cap on Credit Card Interest Rates of 10%,” he wrote. “Please be told that we’ll not let the American Public be ‘ripped off’ by Credit Card Companies.”

The social media put up spooked traders in bank card companies American Express, Visa and Mastercard, whereas UK financial institution Barclays additionally noticed its shares dip.