Group 1 - The CEO of JPMorgan Chase suggested testing a 10% cap on credit card interest rates in Massachusetts and Vermont, indicating it could provide valuable insights [1][4] - President Trump has called for a one-year cap of 10% on credit card interest rates, citing high rates of 28% to 32% as problematic [2][3] - JPMorgan's CEO, Jamie Dimon, warned that a rate freeze could lead to an economic disaster, affecting access to credit for consumers [3][5] Group 2 - JPMorgan Chase is one of the largest issuers of credit cards in the U.S., and it sets the interest rates that consumers pay on their balances [4] - Dimon highlighted that the impact of a rate cap would extend beyond credit card companies, affecting various sectors such as restaurants, retailers, and municipalities [5] - A bill proposed by Senator Bernie Sanders aims to impose a cap on credit card interest rates until 2031, with similar legislation introduced in the House [6]

Group 1 - President Trump proposed a one-year cap on credit card interest rates at 10%, aiming to help millions of Americans save for homes [1] - The financial industry is responding with concerns about the implementation and potential consequences of the proposed cap [2] - JPMorgan CEO Jamie Dimon warned that the cap could lead to an "economic disaster," suggesting it may cause lenders to withdraw credit lines [3] Group 2 - The proposal requires significant congressional support, with Senate Majority Leader John Thune indicating it could limit access to credit for many [5] - House Speaker Mike Johnson acknowledged the need for negotiation to address differences regarding the proposal [5] - Citigroup CEO Jane Fraser expressed skepticism about the likelihood of bipartisan support for the credit card cap in Congress [5]

Group 1 - President Trump urged U.S. lawmakers to cap credit card interest rates at 10% for one year to help Americans save for homes [1] - Following Trump's comments, shares of banks increased, with the KBW Bank index climbing 2% in morning trading [2][3] - Capital One, which relies heavily on credit card revenue, saw its shares rise by 1.8% [3] Group 2 - A previous bill introduced by Senators Josh Hawley and Bernie Sanders aimed to limit credit card APRs to 10% for five years but is currently stalled in Congress [2] - Analysts, including Sanjay Sakhrani of KBW, believe that bipartisan support for a credit card bill is unlikely, with some Republican lawmakers expressing caution regarding price controls [3]

Core Viewpoint - JPMorgan Chase CEO Jamie Dimon warns that President Trump's proposed 10% cap on credit card interest rates could lead to significant reductions in credit availability for most Americans, potentially harming the economy [1][5]. Group 1: Impact on Consumers and Credit Availability - Dimon estimates that the interest rate cap could result in 80% of Americans losing access to credit [2]. - Banking groups caution that such government-imposed limits would restrict credit approvals to consumers with high incomes and excellent credit scores, and could dismantle popular rewards programs funded by interest income and fees [7]. - Proponents of the cap argue it would provide substantial relief to consumers burdened by inflation [9]. Group 2: Industry Response - JPMorgan plans to conduct a "real analysis" on the effects of the proposed cap to present to the government, indicating that initial thoughts have already been shared [8]. - Other financial executives, including Bank of America CEO Brian Moynihan and leaders from Citigroup and Wells Fargo, have expressed concerns about the negative implications of a 10% cap on credit card rates [8]. Group 3: Political Context - The credit card cap proposal is largely supported by Democrats, with Trump suggesting that its effects should be tested in states like Vermont and Massachusetts [2]. - Trump argues that the cap would benefit consumers who have been overcharged by credit card companies, which typically charge rates between 20% to 30% [3][7]. Group 4: Market Reactions - New York-based startup Bilt has introduced credit cards with a 10% APR for the next 12 months, responding to Trump's call, while Wall Street expresses concerns that such a cap could reduce spending and transaction volumes [4].

JPMorgan Chase CEO Jamie Dimon said on Wednesday a proposed 10% cap on credit card interest rates by the Trump administration would be an economic disaster. ...

Core Viewpoint - A proposed federal ceiling of 10% on credit card interest rates could significantly limit access to revolving credit for US consumers, potentially affecting between 137 million and 159 million existing cardholders [1][2] Group 1: Impact on Credit Card Access - The American Bankers Association (ABA) indicates that 74% to 85% of active US credit card accounts would either be closed or face substantial cuts to their credit limits under a 10% annual percentage rate cap [2] - The measure is expected to "effectively eliminate" credit cards as a day-to-day payment option for tens of millions of Americans, according to ABA president and CEO Rob Nichols [3] - The impact of the proposed cap would extend beyond higher-risk borrowers, affecting most cardholders, including those who regularly clear their balances, leading to stricter underwriting and reduced credit options [4] Group 2: Effects on Borrowers and Economy - Among cardholders with VantageScores above 600, between 71% and 84% would see their accounts shut or their credit lines sharply reduced, including many "super-prime" customers with VantageScores above 780 [5] - The ABA warns of potential loss of access to regulated credit in emergencies, which may push borrowers towards less-regulated and more costly alternatives [6] - The proposed cap could reduce consumer spending power, negatively impacting small businesses and the broader US economy, which relies on nearly $3.6 trillion in annual purchases made using consumer credit cards [6]

Financial services company Capital One Financial Corp. (NYSE:COF) is set to report its fourth quarter results on Thursday, amid the looming threat of President Donald Trump’s proposed 10% cap on credit card interest rates, which analysts said leaves the bank more exposed relative to its peers.Capital One Is ‘Most Vulnerable’ To Credit Card Rate CapsAccording to analysts at CFRA Research, Capital One is among the “most vulnerable” to this policy proposal, given its heavy reliance on revolving credit card bal ...

President Donald Trump called for credit card companies to cap interest rates at 10%, roughly half the industry average, effective Jan. 20. That date has arrived, and credit card rates have hardly budged. What happened? In a Jan. 9 post on Truth Social, Trump said that "we will no longer let the American Public be 'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%" or more. He called for a one-year, 10% cap on card rates effective Jan. 20, the one-year anniversary of his ...

Core Viewpoint - Citigroup Chair and CEO Jane Fraser does not anticipate Congressional support for President Trump's proposed 10% cap on credit card interest rates, arguing it would negatively impact credit access and the economy [1][3]. Group 1: Impact of Proposed Interest Rate Cap - Fraser emphasized that a cap on credit card interest rates would restrict access to credit, potentially benefiting only the wealthy while denying credit to those in need [3]. - The macroeconomic effects of such a cap would be concerning, as it could lead to reduced consumer spending, adversely affecting sectors reliant on credit card transactions, including airlines, retailers, hotels, and restaurants [4]. - Fraser advocates for extending access to credit rather than restricting it, highlighting the importance of credit in consumer spending and economic health [4]. Group 2: Industry Response - Trump has expressed a commitment to addressing high credit card interest rates, stating that the public should not be "ripped off" by companies charging excessive rates [5]. - JPMorgan Chase's CFO Jeremy Barnum indicated that the banking industry might oppose the proposed credit card price caps, suggesting that any unsupported directives could lead to significant changes in business practices [6].

Group 1 - U.S. Treasury Secretary Scott Bessent indicated that discussions regarding the practices of credit card companies are reasonable and various aspects can be considered [1][3] - President Donald Trump proposed a one-year cap on credit card interest rates, and Senator Elizabeth Warren expressed that the president reached out to discuss this idea [2] - Bessent acknowledged alignment with some of Senator Warren's policies, particularly regarding the financial burden on the poorest members of society, but he criticized her approach to regulation, suggesting it could harm small and community banks [3]