During a high-profile address at the World Economic Forum in Davos, Switzerland, Jamie Dimon, Chief Executive Officer of JPMorgan Chase & Co., articulated his strong opposition to President Donald Trump's proposal to enforce a 10% ceiling on credit card interest rates. Dimon described this policy measure as an "economic disaster," underscoring the severity of its anticipated impact on consumers and businesses alike.
According to Dimon, imposing such a cap would strip access to credit from approximately 80% of Americans, many of whom depend on this credit as a financial fallback in times of need. Despite the significant strain this might place on JPMorgan itself, Dimon expressed confidence that the banking giant would withstand the challenge. However, his main concern centered on the broader economic fallout that would extend well beyond the banking sector.
He warned, "The groups most adversely affected will not be credit card companies but rather the restaurants, retailers, travel organizations, educational institutions, and municipal entities that rely on consumer spending and credit availability." Dimon's observations highlight how a credit limitation could cascade throughout multiple facets of the economy, potentially dampening consumer purchasing power and disrupting revenue streams across diverse industries.
The proposed cap has faced widespread criticism across the financial landscape. Citigroup Inc.'s outgoing Chief Financial Officer, Mark Mason, has similarly voiced disapproval of the measure. Analysts from Moody's Ratings, including Mike Taiano, have projected that such a limit would negatively affect the credit standing of major credit card issuers by diminishing net interest income, decelerating loan growth, and curtailing revenues derived from transaction volumes.
Financial experts also point to the vulnerability of airline loyalty programs, which have become a significant revenue source linked to co-branded credit card partnerships. For example, Delta Air Lines reported generating around $2 billion from its partnership with American Express during the third quarter of 2025, reflecting a 12% increase compared to the previous year. Such figures underline the substantial financial role these collaborations play within the travel industry and suggest that diminished credit card revenues could have extensive downstream effects.
In summary, Jamie Dimon's public critique of the 10% interest rate cap spotlights profound concerns about restricting credit access for a large portion of the U.S. population and the consequential economic reverberations. These concerns echo throughout financial circles, indicating significant industry-wide apprehension over the proposal's potential to disrupt established credit systems, revenue models, and affiliated consumer programs.