Banks Swell Resistance to Trump’s Credit Card Rate Cap

Resistance to President Trump’s demand to cap credit card interest rates at 10% is growing.

JPMorgan’s fourth-quarter profit declined in part because of the financial impact of its deal to become Apple’s new credit card issuer. (Photo: CrossingLights Wikimedia Commons)

Banks have long opposed such a cap because it would significantly reduce profits from the business, and card issuers and influential bank lobbyists say it could also restrict credit availability. Lawmakers have voiced skepticism as well, Rebecca Ungarino and Joe Light reported for Barron’s Daily.

JPMorgan CFO Jeremy Barnum said the proposal would be bad for consumers and the broader economy.

Trump wants the limit to take effect this month, though he has not specified how the plan would be implemented. Barnum said JPMorgan would have to scale back its credit card business substantially if the cap were imposed.

JPMorgan’s fourth-quarter profit declined in part because of the financial impact of its deal to become Apple’s new credit card issuer.

The transaction shaved 60 cents off per-share earnings, the bank said. Excluding those effects, fourth-quarter earnings per share beat expectations. Revenue rose 7% to $45.8 billion.

House Speaker Mike Johnson told reporters that Trump’s proposed 10% cap could have unintended consequences and would require congressional approval.