Top executives at JPMorgan Chase (JPM.N), including CEO Jamie Dimon and CFO Jeremy Barnum, have strongly criticized President Donald Trump’s surprise proposal to cap credit card interest rates at 10% for one year, warning that it could adversely affect consumers, limit access to credit, and disrupt the broader U.S. economy.

The announcement, made on Trump’s social media platform Truth Social last week, blindsided the banking industry and immediately sent financial stocks tumbling, highlighting the market’s sensitivity to unconventional policy moves.

JPMorgan Executive Concerns

JPMorgan executives stressed that the proposed rate cap would have the opposite effect of its intended goal, potentially restricting the amount of credit available to millions of households.

CFO Jeremy Barnum stated:

“It would be very bad for consumers, very bad for the economy. Our belief is that actually this will have the exact opposite consequence to what the administration wants.”

Credit cards are a highly profitable financial product because interest rates compensate banks for the risk of unsecured lending. The average credit card interest rate in November 2025 stood at 20.97%, according to the Federal Reserve.

Despite these concerns, some researchers argue that banks have sufficient profits to absorb a rate reduction without severe consequences. Brian Shearer, director of competition and regulatory policy at Vanderbilt Policy Accelerator, said:

“Basing arguments solely on profit reduction ignores the data showing a rate cut could be implemented with minimal disruption. A 10% cap could save Americans $100 billion annually with only modest impact on rewards and accounts.”

Industry Response and Legislative Outlook

The banking sector has mobilized to communicate the potential risks of the rate cap to both lawmakers and the administration. Industry representatives warn that imposing a cap could:

• Lead to closure or severe restriction of 82% to 88% of open credit card accounts, according to the Electronic Payments Coalition
• Impact subprime borrowers most severely
• Raise annual fees and reduce credit card rewards
• Introduce additional monthly charges to offset lost interest income

Barnum emphasized that, given the lack of consultation and the unconventional announcement via social media, banks are evaluating all legal and regulatory options.

Congressional response has been mixed. While House Speaker Mike Johnson acknowledged exploring a cap, he cautioned about negative secondary effects. Meanwhile, Democrats including Elizabeth Warren and Bernie Sanders continue to advocate for rate limits, arguing that current rates are exploitative.

Market Reactions

The proposal and ensuing industry pushback negatively impacted investor sentiment, with the KBW Bank Index (.KRX) down 0.9% and JPMorgan shares falling 2.7% in morning trading. Analysts noted that uncertainty over regulatory actions adds pressure to financial sector equities.

CEO Jamie Dimon warned analysts on an earnings call:

“You would have to adjust your model for the added risk by this and ongoing price controls. It would be dramatic.”

Key Takeaways

• Trump’s social media announcement created immediate uncertainty in the credit card industry
• JPMorgan and other lenders warn of restricted credit availability and higher costs for consumers
• Researchers argue a cap could be absorbed without significant disruption, but industry data shows widespread account closures
• Lawmakers are divided, and the legislative path for a cap remains uncertain

The debate highlights the tension between consumer protection efforts and banking industry stability, with the potential to shape both household credit access and financial markets if implemented.