• Jamie Dimon warns a proposed 10% cap on credit card interest rates would be an 'economic disaster.'
• The cap could remove credit access for 80% of Americans, according to Dimon.
• President Trump has yet to outline a clear plan for implementing the interest rate cap.

At the World Economic Forum in Davos, JPMorgan CEO Jamie Dimon criticized President Donald Trump's proposal to cap credit card interest rates at 10%, stating that it would be "an economic disaster." He emphasized that the cap could cut access to credit for 80% of Americans, which many rely on as their "back-up credit," according to Reuters and Al Jazeera.

Trump's proposal, communicated through social media, lacks a detailed implementation plan, raising skepticism among banking executives. Dimon pointed out that such a cap would critically impact various sectors, stating, "the people crying the most will not be the credit card companies; it will be the restaurants, retailers, travel companies, the schools, the municipalities," according to BBC.

The banking industry has responded strongly against the proposed cap. Dimon asserted that a cap would hinder credit availability, especially for those with lower credit scores, as banks would need to cut back on rewarding customers or limit credit access entirely. He suggested that lawmakers test the efficacy of such a measure in Vermont and Massachusetts, states represented by Senators Bernie Sanders and Elizabeth Warren, according to Reuters and Al Jazeera.

Dimon’s viewpoint aligns with many banking executives, including Citigroup CEO Jane Fraser, who stated that the probability of Congress passing such legislation is low. The proposal highlights widespread dissatisfaction among Americans with the current economic climate, as polls indicate significant disapproval of Trump's economic policies, according to BBC.