By: Ebenezer Adu-Gyamfi/Emmanuel Ayiku for GhanaianNewsCanada 22/1/2026
U.S. President Donald Trump’s proposal to cap credit card interest rates has drawn strong criticism from one of America’s top banking leaders, who warned that the plan could have severe consequences for the economy. The debate highlights tensions between efforts to make borrowing more affordable and concerns about potential disruptions in the financial system.
At the World Economic Forum (WEF) in Davos, Switzerland, Jamie Dimon, Chief Executive Officer of JPMorgan Chase & Co., described the idea of capping credit card interest rates at 10 per cent as an “economic disaster”. Dimon told reporters that such a cap proposed by Trump to help ease the financial burden on consumers could force banks to significantly reduce or eliminate credit access for many Americans.
“It would remove credit from 80 per cent of Americans, and that is their back-up credit,” Dimon said, emphasizing that most people rely on credit cards as financial safety nets. He added that while his own bank might survive the change, the broader effects on the economy would be serious and far-reaching.
Why the Plan Is Controversial
The Trump administration has framed the proposal as part of a broader effort to relieve financial pressure on consumers facing high costs of living and rising debt. On social media, Trump described high credit card interest rates which often exceed 20 per cent in the United States as unfair and said a cap would give ordinary families a “break” from expensive borrowing.
However, banking leaders argue that artificially limiting interest rates could force financial institutions to tighten credit standards, reduce available credit lines, and cut back on services that depend on interest income. Dimon and other executives have noted that a strict cap could lead to fewer credit card approvals, reduced rewards programs, and higher costs elsewhere in the system to compensate for lost revenue.
Dimon also warned that the impact would be felt well beyond banks themselves. “People crying the most won’t be the credit card companies,” he said, pointing to restaurants, retailers, travel companies, schools and municipalities, which could suffer if consumers lose access to credit.
Political and Economic Debate
While some politicians and consumer advocates support actions to address high borrowing costs, the proposal would require approval from the U.S. Congress to become law a step that faces significant political challenges. Critics say that although high interest rates can burden borrowers, capping rates without addressing underlying economic factors might do more harm than good.
The debate reflects a broader struggle in many countries including Canada over how best to balance consumer protection, access to credit, and economic stability. Observers say that any major changes to credit markets could have ripple effects that reach beyond borders, affecting global financial institutions, international investors, and everyday consumers.
As political leaders continue to weigh the proposal, business and banking groups are preparing analyses and responses that could influence future policy discussions in the United States.
