Davos, Switzerland — In a sharp rebuttal to President Donald Trump’s proposed cap on credit card interest rates, Jamie Dimon, CEO of JPMorgan Chase, warned that the initiative could lead to significant economic turmoil. Speaking at the World Economic Forum, Dimon emphasized that such a measure would restrict credit availability for a substantial portion of the American population, impacting various sectors, including retail, dining, and education.

Trump’s assertion, posted on Truth Social earlier this month, advocates for limiting credit card interest rates to 10% for a one-year period starting January 20, 2026. The proposal has prompted skepticism among financial experts, particularly regarding its practicality and legal implications.

Dimon described the proposed cap as “drastic,” suggesting it could cut off credit access for approximately 80% of Americans, who often rely on credit cards as a safety net. He argued that in the wake of such a move, it would not be credit card companies that suffer the most, but rather small businesses and families trying to make ends meet. “The people crying the most won’t be the credit card companies,” he said, “it’ll be the restaurants, the retailers, the travel companies, the schools — even municipalities that will struggle with essential payments.”

The potential ramifications of Trump’s plan have not gone unnoticed in the financial sector. Dimon, along with other top executives at JPMorgan Chase, have voiced concerns that the cap could severely restrict access to credit, which is vital for many Americans. With the current average interest rate on credit cards hovering around 20%, this proposed limit represents a significant shift in the landscape of consumer finance.

In a recent interview with CNBC, Trump reiterated his call for the cap, claiming that many credit card companies, despite being profitable, should ease the financial burden on consumers. “I respect them greatly, but they make a lot of money; they got to give people a break,” he stated.

Various banking associations have echoed Dimon’s warning, arguing that implementing such a cap could hinder credit access and potentially devastate millions of households and small businesses. The banking industry is concerned that if the cap were to take effect, it would introduce challenges that could restrict consumer spending and economic growth.

The proposal has also garnered a mixed political response. While some policymakers, such as Senators Bernie Sanders and Elizabeth Warren, have shown support for a cap, Dimon suggested that if the plan moves forward, it should be piloted in their home states of Vermont and Massachusetts.

The introduction of this proposal has already started influencing market dynamics, with shares of major credit card companies like American Express, Visa, and Mastercard experiencing drops following Trump’s announcement. As the financial community watches closely, the implications of a capped interest rate go beyond just consumer credit, signaling potential shifts in the broader economic environment.