Thursday, January 22, 2026- JPMorgan Chase CEO Jamie Dimon has sharply criticized President Donald Trump’s proposal to cap credit card interest rates at 10 percent, warning that it could trigger an “economic disaster” by drastically reducing access to consumer credit.
Speaking at the World Economic Forum in Davos, Switzerland, Dimon said that such a cap would remove credit from up to 80 percent of Americans, since many consumers rely on credit cards as backup credit, potentially leaving households and businesses struggling to cover everyday expenses. Trump has been pushing Congress to approve the rate cap as part of an effort to address rising consumer debt and cost‑of‑living concerns ahead of the 2026 elections.
Dimon didn’t just criticize the idea, he proposed a dramatic test: implementing the cap only in two states, Vermont and Massachusetts, which are represented by senators who have long advocated for interest rate limits. He suggested that such a pilot could reveal the real effects of the policy before any national rollout.
His comments drew laughter from the audience, but Dimon stressed that while big banks like JPMorgan might survive the change, the broader economy including restaurants, retailers, travel companies, and even municipalities could feel the fallout if credit access were suddenly constrained.
The clash highlights deep tensions between policymakers seeking to protect consumers from high interest charges and financial leaders who warn that blunt rate caps could backfire. Banking industry groups have pushed back strongly, saying the measure could limit credit availability and potentially disrupt lending markets.
Meanwhile, analysts note that the proposal would require congressional approval, and partisan divisions make it unlikely to pass in its current form. As debate intensifies, Dimon’s remarks underscore how credit policy could become a flashpoint in broader discussions about economic strategy and consumer finance ahead of crucial legislative decisions.
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