Donald Trump surprised many by recently proposing that the federal government intervene to cap credit card interest rates. Leading financial movers and shakers, most notably Jamie Dimon, the CEO of JPMorgan Chase, blasted the concern. On January 13, President Trump jumped on social media to announce that. He announced his ambitious plan to cap credit card fees at 10% for one year starting January 20, 2026. Unfortunately, the plan has been painted by JPMorgan Chase CEO Jamie Dimon as “an economic disaster,” at times threatening dire repercussions for consumers and businesses.
Trump’s proposal is rooted in his campaign for the upcoming 2024 presidential election. He’s made these pushes before. The average interest rate for credit cards in the United States has climbed to nearly 20%. Trump’s latest proposal to alleviate pressure on Americans’ wallets makes no mistake—debt relief is needed. Banking associations have expressed alarm at the possible fallout from imposing such a cap.
According to US banking associations, a mandated cap on interest rates would make it increasingly difficult for individuals to access credit. They contend that this limitation might be “catastrophic” for millions of families. In addition to financing purchases and investments, small businesses use credit cards for short-term expenses and operational costs.
Dimon further expanded on what he sees as the unintended consequences of capping credit card interest rates. He announced, “It would be an economic catastrophe. I am not exaggerating, our business could weather it, by the way.” He further emphasized that the real impact would be felt by various sectors, such as restaurants and retailers, rather than the credit card companies themselves.
“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.” – Jamie Dimon
In his public remarks, Trump indicated that if his proposal were to be adopted, it should initially be trialed in states like Vermont and Massachusetts. He appeared to have specifically aimed for U.S. senators Bernie Sanders and Elizabeth Warren. Both have already supported such caps in the past.
In addition to abandoning his own idea, Trump admitted that credit card companies have been calling him about his proposal. “As you can imagine,” he continued, “I’ve been getting calls from credit card companies—and some of my friends, too. I’ve got a lot of loyalty with them. He continued that these companies have earned his respect, but he feels they owe it to consumers to offer them relief.
“I respect them greatly, but they make a lot of money, they got to give people a break.” – Donald Trump
As the credit card interest rate debate continues to develop, it’s difficult to know exactly what would be the result of Trump’s proposal. The contrasting views from financial leaders and political figures highlight the complexity of the issue and its potential impact on the economy.