JPMorgan warns Trump's push to cap credit card interest rates would be 'very bad for consumers'

A proposed cap on credit card rates would “significantly change” JPMorgan $JPM Chase's business and harm its customers, the bank warned Tuesday, after President Donald Trump called for the policy earlier this month.

“If it were to happen, it would be very bad for consumers, very bad for the economy,” JPMorgan's CFO Jeremy Barnum said Tuesday on an earnings call, adding that the bank’s card operation “would be a business that we would have to significantly change” if it came into place.

“Our ‌belief is that actually this will have the exact opposite consequence to what ​the administration wants,” he added.

Over the weekend, Trump warned that credit card issuers would be “breaking the law” if they failed to cap interest rates at 10% for one year, despite the absence of legislation or executive authority to impose such a limit. Banks were poised for a victory lap this week after a banner year in 2025, but the comments triggered a sell-off in card-heavy firms Monday.

Even after the Federal Reserve cut interest rates late last year, retail credit card rates have barely come down. The average interest rate on store-branded cards is still above 30%, according to Bankrate, meaning many shoppers continue to pay extremely high borrowing costs if they carry a balance.

Industry lobbying and legal challenges would likely blunt or delay any attempt to enforce a cap. Yet the episode shows how exposed banks remain to policy whiplash — and to the risk of politicized pressure on profitable business lines. With Trump publicly attacking regulatory agencies and the Federal Reserve, bank executives are being not-so-subtly encouraged to watch what they say about policy and the economy.

Barnum said there is “way too much” uncertainty about the plan to specify how much damage it could do. But that JPMorgan, the second-largest U.S. card issuer, would push back against the policy.

“This is a very, very, very competitive landscape that involves, you know, providing services to customers who want them and need them,” Barnum said. “If you wind up ​with weakly supported directives to radically change our business ‍that aren't justified, you have to assume everything is on the table. We owe that to our shareholders.”

It comes after JPMorgan capped off 2025 with a stronger-than-expected fourth quarter, proving how profitable 2025 was for Wall Street's largest bank. The bank reported earnings and revenue well above forecasts after it benefited from market volatility and associated heavy trading activity, a reasonable level of dealmaking, and strong client demand across its markets and wealth businesses.

On the consumer side, JPMorgan’s results continued to show relatively stable credit conditions. Spending held up, delinquencies remained contained even as they started ticking up slightly, and consumer banking remained one of the firm's most reliable and material profit engines. Credit cards continued to generate outsized returns as borrowing costs remained high.

Consumers also kept spending last holiday season despite record credit card debt, relying more on borrowing to cover year-end costs. That likely leaves many households with higher balances even after recent rate cuts.

—Catherine Baab contributed to this article.