JPMorgan Chase says banks could fight
CNBC • • general
Key Points:
- JPMorgan Chase CFO Jeremy Barnum indicated the banking industry might legally challenge President Trump's demand to cap credit card interest rates at 10%, stating "everything's on the table" if unsupported directives harm business.
- Trump’s proposal, announced last Friday, aims to limit credit card rates to 10% for a year, but banks warn this could reduce credit availability and consumer spending, negatively impacting the economy.
- The current average credit card interest rate is 19.7%, with higher rates for subprime borrowers and store cards, making the proposed cap significantly lower than market levels.
- Barnum emphasized that such caps could shrink credit supply rather than lower costs for consumers, harming both consumers and the broader economy.
- Enforcement of Trump's directive is uncertain
