President Trump's proposal to cap credit card costs at 10% for a year could have severe economic consequences, warns Jamie Dimon, CEO of JPMorgan Chase. Dimon argues that this plan would restrict credit access for the majority of Americans, impacting restaurants, retailers, travel firms, and schools. The proposal, which Trump announced on Truth Social, has yet to be implemented, and its legal enforceability remains uncertain. Dimon emphasizes the potential harm to consumers, especially those relying on credit as a backup. He also criticizes the plan's potential negative impact on small businesses and the economy, suggesting that it could lead to missed water payments and other financial struggles. The proposal has sparked debate, with US banking associations and industry leaders opposing it, citing the potential harm to consumers and the economy. Trump's plan, reminiscent of his 2024 presidential campaign promises, has caused a stir among investors and credit card companies, with shares of American Express, Visa, Mastercard, and Barclays dipping in response. The average credit card interest rate in the US is currently around 20%, and experts warn that capping it at 10% could have far-reaching consequences.
