JP Morgan Warns: Trump’s 10% Credit Card Cap Would Trigger Economic Disaster
Wall Street's biggest bank just dropped a bombshell prediction—and it's got Main Street's wallet in the crosshairs.
What happens when Washington tries to play rate-setter?
JP Morgan analysts are sounding the alarm: a proposed 10% cap on credit card interest could unravel the consumer credit system overnight. They argue artificial rate ceilings historically backfire—shrinking credit access, squeezing lenders, and sparking a liquidity crunch. The math doesn't lie: when returns get capped, risk gets rationed.
Where does the money go when traditional credit freezes?
Enter decentralized finance. While banks grapple with regulatory handcuffs, DeFi protocols operate with algorithmic precision—no political rate caps, just supply-demand dynamics. It's the ultimate irony: heavy-handed regulation could accelerate the very disruption Wall Street fears. Think of it as financial Darwinism with a blockchain twist.
The real crisis isn't the rate—it's the reaction.
JP Morgan's warning exposes a fragile dependency: our entire consumption economy floats on variable-rate plastic. Cap the rates, and watch credit lines evaporate like morning fog. Meanwhile, crypto-native lending platforms keep humming along at market rates—because when you cut out the middleman, you cut out the political theater too. Nothing says 'financial innovation' like watching legacy institutions sweat over a few percentage points.
One cynical footnote: since when did banks become champions of affordable credit? Suddenly everyone's a populist when their profit margins are on the chopping block.
JP Morgan & Other Leading Banks Express Dissatisfaction with Trump’s Credit Card Interest Rate Cap
Trump had promised to put a cap on credit card interest rates ahead of his election campaign in 2024. He faced criticism for not pushing it through during his first term in office. This time around, the US President is powering through to keep his campaign promise. However, leading banks like JP Morgan and Wall Street experts remain unhappy with the decision.
Apart from JP Morgan, US Bancorp CEO Gunjan Kedia stressed that the blanket cap on credit card interest rate would hurt the economy.Kedia told analysts.
