Dimon: "Credit Card Interest Rate Cap an Economic Disaster... Disagrees with U.S. Immigration Policy"

"First, implement the plan in regions represented by progressive lawmakers who support it"
"Immigrants play a crucial role in the US economy... They deserve proper treatment"

Jamie Dimon, CEO of JPMorgan Chase and often referred to as the "Emperor of Wall Street," criticized President Trump's proposal to cap credit card interest rates at a maximum of 10 percent, calling it "an economic disaster."

On the 21st (local time), CEO Dimon made these remarks at the World Economic Forum (WEF, Davos Forum) held in Davos, Switzerland. He warned, "In the worst-case scenario, the credit card business would shrink dramatically." He emphasized that the impact would not be limited to the downsizing of the financial industry, including JPMorgan Chase. He pointed out, "Credit would disappear for 80 percent of Americans. For them, credit serves as a kind of emergency resource." By capping credit card interest rates, it would become more difficult for consumers with lower credit scores to obtain cards, potentially forcing them into riskier forms of borrowing.

Jamie Dimon, CEO of JPMorgan Chase, is speaking at the World Economic Forum (WEF, Davos Forum) held in Davos, Switzerland, on the 21st (local time). Photo by Reuters Yonhap News

CEO Dimon proposed that this system first be introduced in the states of Vermont and Massachusetts. Progressive senators Bernie Sanders (Independent, Vermont) and Elizabeth Warren (Democrat, Massachusetts) have publicly supported the bill. He argued, "We should run a pilot program and see what happens," adding that "the ones who will cry out the most will not be the card companies, but restaurants, retailers, travel agencies, schools, and local governments." This means that businesses relying on consumer card payments would be affected before the card companies themselves. Both CEO Dimon and JPMorgan Chase have publicly opposed the introduction of a credit card interest rate cap. However, The Wall Street Journal (WSJ) noted that Dimon's remarks on this day were delivered in a much stronger tone.

Credit card interest rates are fees charged on unpaid balances from card usage. According to the Federal Reserve Bank of New York, about 60 percent of credit card users carry a revolving balance. According to LendingTree, the average credit card interest rate in the United States as of this month is 23.79 percent. President Trump announced that, starting January 20, he would introduce a measure to cap credit card interest rates at a maximum of 10 percent for one year.

Meanwhile, CEO Dimon also commented on the Immigration and Customs Enforcement (ICE) operations targeting undocumented immigrants, stating, "It's hard to accept seeing five able-bodied men assaulting a grandmother. We need to calm the anger within us regarding immigration issues." He urged, "Grant citizenship and protection opportunities to those who work diligently."