Credit Card Cap Controversy: A Clash Between Trump and Banking Titans

JPMorgan executives and others in the banking industry are pushing back against President Trump's unexpected proposal to cap credit card interest rates at 10%. Industry leaders argue the move could harm consumers and the economy, fearing millions could lose access to credit. This sector-wide scramble seeks to sway lawmakers and officials.

Top executives from JPMorgan Chase, along with other banking industry leaders, have issued a stark warning about President Donald Trump's recent proposal to cap credit card interest rates at 10%. The proposed cap, which Trump announced via his social media platform Truth Social, could negatively impact both consumers and the broader economy, they argue.

Financial institutions claim the cap could result in millions of households losing access to credit. However, critics argue that the banks have significant room in their profit margins to lower rates. Meanwhile, this unexpected proposal has spurred a flurry of activity as banks and industry representatives scramble to engage with government officials and lawmakers to discuss potential repercussions.

The proposal not only catches the banking sector off guard but also divides political opinion. While some lawmakers express concern over the proposed cap's effects, others, including Democrats like Elizabeth Warren and Bernie Sanders, view the cap as a necessary measure against exploitative credit card rates. The debate continues as financial markets react, with JPMorgan shares seeing a dip following the announcement.

(With inputs from agencies.)