JPMorgan Chase & Co. (JPM) CEO Jamie Dimon didn't mince words Wednesday when asked about President Donald Trump's proposed 10% cap on credit card interest rates. Speaking at the World Economic Forum in Davos, Switzerland, he called it an "economic disaster" that would fundamentally reshape consumer finance in America.

The Credit Crunch Nobody Wants

According to Dimon, the math is brutal: "It would remove credit from 80% of Americans, and that is their back-up credit." While he acknowledged JPMorgan would weather the storm, the banking chief made clear the real casualties would be elsewhere.

"People crying the most will not be the credit card companies; it will be the restaurants, the retailers, the travel companies, the schools, the municipalities," Dimon explained. The logic is straightforward. Cut off credit access, and consumer spending drops across the economy.

Banks and Airlines Both Sweating

Dimon isn't alone in his concerns. Citigroup Inc. (C) outgoing CFO Mark Mason has voiced similar disapproval. Mike Taiano from Moody's Ratings labeled the proposal "credit negative" for major card-issuing banks, warning it would squeeze net interest income, slow loan growth, and hammer volume-based revenues.

The ripple effects could extend into unexpected corners. Industry experts are particularly worried about airline loyalty programs, which rake in billions through co-branded credit card partnerships. Delta Air Lines, Inc. (DAL) pulled in roughly $2 billion from its American Express (AXP) loyalty partnership in the third quarter of 2025 alone, marking a 12% year-over-year jump. A rate cap that reshapes the credit card business could put those lucrative arrangements at risk.