JPMorgan CFO warns credit card rate cap could hurt US consumers, economy

JPMorgan Chase’s chief financial officer Jeremy Barnum said a proposed 10% cap on U.S. credit card interest rates would be “very bad for consumers, very bad for the economy,” warning it could force the bank to radically change its card business.​

What the CFO said

• Barnum told reporters and analysts that if a 10% cap were implemented, JPMorgan’s credit card operation would be a business “we would have to significantly change.”​

• He argued that price controls at that level would make parts of the business unprofitable and could ultimately hurt “the people who need it the most,” referring to higher‑risk and lower‑income borrowers.​

Trump’s proposed rate cap

• President Donald Trump has called for a one‑year cap of 10% on credit card interest rates starting 20 January 2026, despite no clear legal mechanism yet laid out to enforce it.​

• Typical U.S. credit card APRs have been near 20% in recent years, so a 10% ceiling would represent a sharp reduction in what issuers can charge.​

Why banks say it could hurt consumers

• JPMorgan and industry groups argue that a 10% cap would make lending to subprime or higher‑risk customers uneconomic, leading banks to cut back credit lines or stop offering cards to many such households.​

• Analysts and trade groups warn banks would likely respond by tightening approval standards and raising other charges, such as annual fees, balance transfer costs, or reducing rewards and promotional offers.​

Potential economic impact

• Researchers and Wall Street executives estimate a 10% hard cap could erase on the order of tens of billions of dollars a year in bank revenue from cards, squeezing a key profit center.​

• Critics say reduced access to revolving credit could weigh on consumer spending, which makes up a large share of U.S. economic activity, and could push some borrowers toward less regulated, more expensive forms of debt like payday loans.​

Market reaction

• After Trump’s announcement, shares of major card‑focused lenders such as Capital One and Synchrony, as well as diversified banks like JPMorgan and Bank of America, fell, reflecting investor concern about the profitability of the card business under a strict cap.​

• Networks and card‑centric players including Visa, Mastercard, and American Express also saw declines, underscoring how central high‑rate revolving balances are to the current card ecosystem.​