JPMorgan Chase's Dimon: The credit card interest rate cap proposed by Trump will lead to an "economic disaster" and may force banks to cut off lending on a large scale

On January 21, JPMorgan Chase CEO Jamie Dimon warned at the World Economic Forum in Davos about President Trump's plan to impose a cap on credit card interest rates, stating that it could trigger an "economic disaster." Dimon pointed out that if the government enforces a cap on interest rates, banks will be forced to significantly reduce credit availability for most American consumers, which would impact the overall economy. Trump called earlier this month for a cap on credit card interest rates at 10%, setting January 20 as the deadline as part of his policy to lower the cost of living for the public. As the specific plan has not yet been announced, the banking industry is actively assessing the impact and preparing to respond. Dimon revealed that JPMorgan Chase has submitted an analysis to the government based on actual business data but has not been deeply involved in policy discussions. He stated, although JPMorgan Chase has the capacity to adapt to policy changes, the credit card business may be forced to undergo a large-scale contraction in extreme cases, which would directly affect millions of consumers who rely on credit cards and pose a potential risk to the U.S. consumption-driven economy. At Davos, Dimon also commented on U.S.-European relations. Regarding Trump's recent actions that have angered Europe over issues like Greenland, he stated that changes in Europe must be led by Europe itself, and "the U.S. cannot do it for them." He subtly pointed out that the differences between the U.S. and Europe are creating a deep dilemma for Europe on how to respond to the U.S.'s repeated pressures. JPMorgan Chase to Submit Policy Impact Analysis According to Bloomberg, JPMorgan Chase CEO Jamie Dimon stated at the Davos Forum that the bank will submit a detailed analysis report on the impact of the credit card interest rate cap to the Trump administration. He revealed that although preliminary opinions on the related proposal had been provided earlier, there has not been in-depth communication between the two parties regarding this policy. Dimon's statement indicates that even though he personally holds a clear critical stance on the policy, JPMorgan Chase is still attempting to participate in and influence the policy-making process by providing professional analysis. As the head of the largest bank in the U.S., Dimon has long played a key role in financial regulation and policy discussions, and his views are typically given high attention by decision-makers in Washington. Dimon pointed out that even in the most stringent policy scenarios, JPMorgan Chase's overall business remains resilient. However, he simultaneously warned that this could lead banks to "significantly reduce" the scale of their credit card business, effectively meaning that credit supply to a broad range of consumers will be significantly tightened. Lack of Policy Details Causes Industry Uncertainty Trump posted on the social media platform Truth Social on Friday, calling for a cap on credit card interest rates at 10% starting January 20, 2026, for one year. He claimed that this move aims to prevent the American public from being "extorted" by credit card companies. Although this proposal echoes his commitments during the 2024 campaign, the statement did not provide any specific details on how to implement the plan or enforce compliance by companies. This vague statement has left banks and payment institutions in a passive position. According to Bloomberg, while financial institutions are attempting to prepare for various potential policy scenarios, the lack of clear guidance has made it difficult to form a systematic response strategy The White House views this proposal as part of its overall policy to reduce the cost of living for the American public. In the current environment of persistent inflation and high interest rates, the cost of credit card debt has become a heavy burden for many households. However, there are widespread concerns within the banking industry that without structural design, simple interest rate caps may lead to a contraction in credit supply, further exacerbating financing difficulties for some consumers. Mandatory Price Limits May Lead to Credit Tightening The core logic of Jamie Dimon's warning is that interest rate caps will fundamentally change the risk-return structure of credit card business. Under a 10% interest rate cap, banks may not be able to effectively cover potential losses from extending credit to high-risk customers, leading them to tighten credit standards across the board or even gradually withdraw from certain market segments. The group most directly affected will be consumers with lower credit scores or shorter credit histories, who are likely to be the first to lose access to credit cards. For millions of American households that rely on credit cards for daily transactions and emergency expenses, this amounts to losing a critical financial support tool