Banks Prepare to Fight Trump’s Proposed 10% Credit Card Rate Cap

America’s largest banks, including JPMorgan Chase, are preparing to contest a White House proposal backed by President Trump to cap credit card interest rates at 10 percent. JPMorgan’s chief financial officer, Jeremy Barnum, said after the bank’s earnings call that “everything’s on the table” to block the proposal and warned that “if it were to happen, it would be very bad for consumers, very bad for the economy.” Banks have discussed options such as offering cards with interest capped at 10 percent or temporary rate reprieves, and bank leaders and lobbyists have been reaching out to allies in Washington, including Treasury Secretary Scott Bessent.

The proposal, announced on social media, is not the same as law, but phones “from Wall Street to Washington have been buzzing” over its possible effects. Research cited in the coverage said a 10 percent cap could make up to 80 percent of credit card customers unprofitable at current rates and limits, and JPMorgan said it would have to cut back on the amount of credit it offers.

The firm expects its 2026 net interest income, which includes credit card earnings, to total $103 billion; Michael Miller, an analyst at Morningstar, told DealBook that “billions” of that would be at stake if a cap became law. Analysts expect similar pushback from executives at Bank of America, Citigroup and Wells Fargo.

Key Topics

Business, Jpmorgan Chase, Credit Card Rates, Donald Trump, White House, Itamar Drechsler