Overview
- Speaking in Davos, President Trump shifted from a unilateral deadline to asking Congress to enact a one-year 10% cap, after his Jan. 20 target passed without enforcement or broad issuer compliance.
- JPMorgan CEO Jamie Dimon called the cap an economic disaster that could remove credit from most Americans, and Capital One CEO Richard Fairbank warned it would likely trigger a recession by forcing a rapid pullback in lending.
- The American Bankers Association estimates at least 137 million cardholders could lose access under a 10% ceiling, while industry studies project widespread account closures or sharp credit-line cuts.
- Legal experts and executives say a nationwide cap would require legislation, with top lawmakers and Citigroup’s CEO expressing skepticism that Congress will pass such a measure.
- Banks are exploring tactical responses, with Bank of America confirming internal talks on a 10% product and reports saying Citigroup is considering a similar card, as some fintechs roll out limited 10% offers that would likely target prime borrowers.