JPMorgan vs Trump Credit Card Cap: Everything You Need to Know
When I first saw the headlines about Trump proposing a 10% cap on credit card interest rates, my immediate reaction was, "Finally! Someone's doing something about these ridiculous rates."
But then JPMorgan Chase, literally the biggest bank in America, basically said they might fight it. And suddenly, what seemed like a simple consumer protection issue turned into something way more complicated.
So let's break this down together, because what happens here could seriously impact your wallet.
What Exactly Is Happening?
Here's where we're at right now...
President Trump announced on January 9, 2026 that he wants credit card companies to cap their interest rates at 10% for one year, starting January 20th (the anniversary of his inauguration). For context, the average credit card interest rate right now sits around 21-23%, which, yeah, is pretty brutal if you're carrying any balance.
But here's where it gets interesting. On Tuesday, January 14th, Jeremy Barnum (JPMorgan's CFO) had some... let's call them choice words about the whole thing during an earnings call.
His exact quote: "If you wind up with weakly supported directives to radically change our business that aren't justified, you have to assume that everything's on the table. We owe that to shareholders."
Translation? They're not going down without a fight.
Why JPMorgan Is Sounding the Alarm
Now, I get it. When you hear banks complaining about not being able to charge 25% interest rates, your first instinct might be to roll your eyes. Trust me... mine did too.
But (and this is a big but), there's actually more to their argument than just "we want to keep making money."
The Profitability Problem
According to Barnum, implementing a 10% rate cap would be "very bad for consumers, very bad for the economy." Their card operation would need to "significantly change" to survive.
And here's the thing, they're probably not entirely wrong about the change part. Credit cards, unlike mortgages or car loans, are unsecured debt. There's no house or vehicle the bank can repossess if you don't pay. That higher risk traditionally justifies higher rates.
A study from the Electronic Payments Coalition (yes, they're industry-affiliated, so take it with a grain of salt) claims that a 10% cap would force banks to close accounts for nearly 90% of current users, roughly 175 million Americans. Specifically, most accounts with credit scores below 740 would be shut down.
That's... kind of terrifying, actually.
The Real Winners and Losers
Let me paint you a picture of what analysts think could happen:
If you have excellent credit (740+):
- You're probably fine. Banks might keep servicing you.
- But say goodbye to those sweet travel rewards and cash back perks.
- Banks would need to cut costs somewhere.
If you have fair to poor credit:
- You might lose access to credit cards entirely.
- This could push people toward payday loans and other predatory alternatives.
- And those options? Often way worse than 20% APR credit cards.
The banking industry:
- Could lose $20-30 billion in annual profits.
- Stock prices already reflected this, Capital One dropped nearly 7% on Monday after Trump's announcement.
The Legal Minefield Nobody's Talking About
Okay, here's where this gets really messy...
Trump says banks that don't comply would be "in violation of the law." But, and this is crucial, there currently is no law capping credit card rates in the United States.
Senators Bernie Sanders and Josh Hawley introduced a bill last year that would limit card APRs at 10% for five years. It's been sitting in Congress collecting dust since February 2025.
So how exactly would Trump enforce this?
The Enforcement Question
Policy experts are genuinely confused. Tobin Marcus from Wolfe Research put it bluntly: "I'm not aware of an authority that they can use to do this unilaterally in any kind of a sweeping way."
The options are basically:
- Congressional Legislation - Most straightforward, but there's no way Congress passes something by January 20th
- Executive Order - Legally questionable at best
- Regulatory Pressure - Through agencies like the CFPB (Consumer Financial Protection Bureau)
But here's the irony... Trump's administration has been trying to shut down the CFPB. They've already gutted much of its functionality. So using them to enforce price controls? That's... complicated.
What This Means for Your Wallet Right Now
Let me get practical for a second, because all this drama doesn't help you if you're staring at a $5,000 balance at 24% APR.
If You're Carrying Balance Right Now
Don't wait for political theater to save you. Seriously.
Immediate steps you can take:
-
Look for 0% balance transfer cards - Many offer 12-18 months interest-free. If you have decent credit (680+), you've got options.
-
Call your credit card company - Ask for a rate reduction. A 2025 LendingTree survey found that 83% of cardholders who asked got some relief.
-
Pay more than the minimum - Always. Even $50 extra per month makes a massive difference over time.
Let's do some quick math... If you've got $5,000 at 20% APR and only make minimum payments, you'll be in debt for about 23 years and pay roughly $7,723 in interest. Yeah. Twenty-three years.
If You're Not Carrying a Balance
Honestly? This probably won't affect you much either way.
Credit card interest rates are basically meaningless if you pay your bill in full every month. Focus on maximizing rewards and benefits while you can, because those might be the first thing banks cut if rates do get capped.
The Bipartisan Weirdness of This Moment
Can we just... appreciate how weird this political alignment is for a second?
You've got Trump, a Republican president, pushing for price controls (traditionally a progressive policy). Elizabeth Warren, a progressive Democrat, saying she'd work with him if he was serious. Bernie Sanders has been advocating for this exact policy for years.
And the banking industry? They're united in opposition regardless of political affiliation.
It's like we've entered some alternate dimension where the normal political battle lines don't apply anymore.
What Voters Actually Want
Here's the thing that makes this so politically juicy... Americans really don't like their credit card interest rates.
When you're paying more in interest charges than you are on the principal, and you see your bank posting record profits quarter after quarter... yeah, it feels like you're getting squeezed.
Current data shows Americans are carrying about $1.23 trillion in credit card debt. That's a record high. Interest charges totaled around $160 billion in 2024.
So when a politician, any politician, promises relief from those rates? It resonates. It resonates hard.
What Experts Say Will Actually Happen
I've been reading through analyst reports and expert commentary all morning, and here's the consensus view (which is... less dramatic than the headlines suggest):
The Most Likely Scenario
Short term: Nothing changes by January 20th. There's simply no legal mechanism to make it happen that fast.
Medium term: This becomes a negotiating position. KBW analyst Michael McGratty asked the right question: "Is 10% an opening bid?"
Banks might agree to voluntarily lower rates somewhat, maybe to 15-17% average, in exchange for avoiding actual legislation. It's a compromise nobody loves but everyone can live with.
Long term: Depends entirely on whether Trump actually pushes Congress for legislation (with Elizabeth Warren's help, apparently), or if this was just... campaign-style rhetoric.
The Unintended Consequences Nobody's Modeling Yet
Brian Shearer from the Vanderbilt Policy Accelerator released research suggesting that yes, a 10% cap would save Americans about $100 billion annually. Banks would still be profitable.
But, and this is where it gets tricky, we don't really know what secondary effects we're not thinking about.
What happens to:
- College students building credit?
- Small business owners using personal cards?
- People with thin credit files trying to establish history?
- The rewards economy (airlines and hotels rely heavily on credit card partnerships)?
Delta Air Lines, for example, made $8.2 billion from their American Express partnership last year. If credit card economics change dramatically... that's going to ripple through other industries we're not even considering yet.
The Historical Context You Need
This isn't the first time politicians have tried to cap credit card rates.
When the Credit CARD Act passed in 2009 (under Obama), it brought significant consumer protections. Limited when banks could raise rates, changed payment applications, restricted fees.
But here's what happened: Banks scrambled to figure out how to recoup lost revenue. One card infamously charged 79.90% APR for a brief period. Eventually, rates stabilized... at higher levels than before.
There's precedent for price controls backfiring, is what I'm saying.
Arkansas has a strictly enforced 17% interest rate cap. Research shows that the poor and less creditworthy get cut out of consumer credit markets there entirely. They're forced toward alternatives that are often worse.
So... What Should You Actually Do?
I know you came here probably wanting a clear answer about what's going to happen. And the frustrating truth is... nobody really knows yet.
But here's what you CAN control:
Action Steps for Right Now
1. Audit your credit card situation
- List all your cards, balances, and interest rates
- Identify which ones are costing you the most
- Make a plan to tackle high-interest debt first
2. Improve your credit score
- Pay bills on time (seriously, this is 35% of your score)
- Keep credit utilization under 30%
- Don't close old accounts
3. Take advantage of current offers
- 0% balance transfer cards are still widely available
- Rewards programs might get cut if rate caps happen
- Lock in good terms while you can
4. Don't count on political solutions
- Whether this cap happens or not, you need a debt strategy
- Political timelines rarely align with personal finance emergencies
- You can't afford to wait and see
Looking Ahead
Over the next few weeks, watch for:
- Whether Trump mentions this in his State of the Union or other major speeches
- If Elizabeth Warren actually introduces bipartisan legislation
- How bank earnings calls discuss potential rate changes
- Any movement from the CFPB (if it survives its current legal challenges)
The Bigger Picture Nobody's Discussing
You know what really gets me about this whole debate?
We're arguing about whether to cap rates at 10% or keep them at 20-25%... but we're not talking about why so many Americans are drowning in credit card debt in the first place.
Wages haven't kept pace with inflation. Housing costs have exploded. Healthcare is bankrupting families. Student loans are crushing an entire generation.
Credit cards became the emergency fund that people never had a chance to build. They're how people bridge the gap between paychecks. They're how medical bills get paid and cars get repaired.
So yeah... maybe capping interest rates helps. Or maybe it just pushes people toward worse alternatives. But until we address the underlying economic pressures that make credit card debt almost inevitable for millions of Americans... we're kind of just rearranging deck chairs, aren't we?
The Waiting Game
JPMorgan Chase saying "everything's on the table" is their way of drawing a line in the sand. They're signaling to Trump, to Congress, to regulators: we will fight this in court if necessary.
And honestly? They probably have a decent legal case, at least in the short term.
But public opinion matters too. If enough people demand relief from credit card rates, and if politicians see this as a winning issue... banks might find themselves compromising whether they want to or not.
The next few months are going to be fascinating to watch. Just... don't let your financial planning depend on how this political drama plays out.
Take care of your own situation. Make smart moves with the cards you've been dealt (pun absolutely intended). And keep one eye on the news, because this story is far from over.
Frequently Asked Questions
Q: Will Trump's credit card rate cap actually happen?
A: Unknown. There's no clear legal pathway for it to happen by January 20th as proposed. It would likely require congressional legislation, and while there's some bipartisan interest, passage is far from guaranteed.
Q: What's the average credit card interest rate right now?
A: As of late 2025/early 2026, the average credit card APR is around 21-23%, with rates for accounts accruing interest averaging 22.3%. Rates vary based on your credit score.
Q: Would I lose my credit card if rates get capped at 10%?
A: Possibly, especially if you have fair to poor credit (below 740 credit score). Industry studies suggest banks might close up to 175 million accounts to maintain profitability, though these projections are disputed.
Q: Are there any credit cards with rates below 10% right now?
A: Very few. Some credit unions and local banks offer rates below 10%, but they're rare. Your best bet for low rates is 0% intro APR cards if you have good credit.
Q: What happens to credit card rewards if rates get capped?
A: Rewards programs would likely be scaled back significantly. Banks would need to cut costs, and rewards are an obvious target since they're expensive to maintain.
Q: Can I negotiate a lower interest rate on my current card?
A: Yes! An 83% success rate was reported in a 2025 survey. Call your credit card company and ask. The worst they can say is no.
Q: Why are credit card rates so high compared to other loans?
A: Credit cards are unsecured debt with no collateral, have no fixed repayment timeline, and carry higher default risk. This justifies higher rates compared to mortgages or auto loans where the asset can be repossessed.
Stay Informed: Bookmark this page and check back for updates as this story develops. The battle between Washington and Wall Street over your credit card rates is just getting started.