Wall Street Chiefs Scorn Trump's Credit Card Crackdown
Top executives from major Wall Street firms have issued a stern warning to President Donald Trump, cautioning that his plans to cap credit card interest rates would do more harm than good to the US economy. The proposed 10% limit on credit card interest rates, which would drastically reduce profits for banks and financial institutions, has been met with resistance from bankers who fear it could lead to reduced lending and higher borrowing costs.
The banking industry's top leaders have expressed their opposition to Trump's efforts, citing concerns that the cap would "reduce the supply of credit" and hurt consumers in the long run. JPMorgan Chase CEO Jamie Dimon described his respect for Federal Reserve Chair Jerome Powell but disagreed with some of the Fed's decisions, while BNY Chief Executive Officer Robin Vince warned that attacking the Fed's independence could have disastrous consequences.
The proposed cap on interest rates would likely cost banks around $100 billion in lost revenue each year, according to researchers at Vanderbilt University. The move has sent shockwaves through the credit card industry, with shares plummeting as investors worried about the potential impact on profits. Industry leaders are prepared to fight against the cap, with JPMorgan's Chief Financial Officer Jeffrey Barnum stating that it would have the opposite effect of what Trump intends – reducing access to affordable credit.
The backlash from Wall Street comes at a time when President Trump is also seeking to cut the Consumer Financial Protection Bureau's budget by nearly half and push a deregulatory agenda. The Fed's independence, which allows policymakers to set interest rates without political interference, remains a sacrosanct institution among major banks. As the mid-term elections approach, Trump's attacks on the credit card industry are being seen as a bid to boost his popularity among conservative voters.
However, the move has left many in the banking community feeling uneasy about Trump's intentions. The President's latest foray into the financial sector comes after he signed the One Big Beautiful Bill, which pushed further tax cuts and regulatory changes that have benefited Wall Street. With the US economy showing signs of growth, some analysts are wondering whether Trump's actions will ultimately harm the country rather than help it.
Top executives from major Wall Street firms have issued a stern warning to President Donald Trump, cautioning that his plans to cap credit card interest rates would do more harm than good to the US economy. The proposed 10% limit on credit card interest rates, which would drastically reduce profits for banks and financial institutions, has been met with resistance from bankers who fear it could lead to reduced lending and higher borrowing costs.
The banking industry's top leaders have expressed their opposition to Trump's efforts, citing concerns that the cap would "reduce the supply of credit" and hurt consumers in the long run. JPMorgan Chase CEO Jamie Dimon described his respect for Federal Reserve Chair Jerome Powell but disagreed with some of the Fed's decisions, while BNY Chief Executive Officer Robin Vince warned that attacking the Fed's independence could have disastrous consequences.
The proposed cap on interest rates would likely cost banks around $100 billion in lost revenue each year, according to researchers at Vanderbilt University. The move has sent shockwaves through the credit card industry, with shares plummeting as investors worried about the potential impact on profits. Industry leaders are prepared to fight against the cap, with JPMorgan's Chief Financial Officer Jeffrey Barnum stating that it would have the opposite effect of what Trump intends – reducing access to affordable credit.
The backlash from Wall Street comes at a time when President Trump is also seeking to cut the Consumer Financial Protection Bureau's budget by nearly half and push a deregulatory agenda. The Fed's independence, which allows policymakers to set interest rates without political interference, remains a sacrosanct institution among major banks. As the mid-term elections approach, Trump's attacks on the credit card industry are being seen as a bid to boost his popularity among conservative voters.
However, the move has left many in the banking community feeling uneasy about Trump's intentions. The President's latest foray into the financial sector comes after he signed the One Big Beautiful Bill, which pushed further tax cuts and regulatory changes that have benefited Wall Street. With the US economy showing signs of growth, some analysts are wondering whether Trump's actions will ultimately harm the country rather than help it.
... no wait, I was just thinking about how it'll hurt the average Joe who can't even afford their own interest payments 
. Like, what's the point of having a strong economy if people are stuck in debt forever? But on the other hand, those bankers at JPMorgan Chase and BNY seem like they're just being super reasonable by pointing out that this cap will lead to less lending and higher borrowing costs... or maybe they're just looking out for their own interests? 
I don't know, man. Can we just agree that something needs to change in the financial system? But only if it means making credit more accessible to everyone, not just the wealthy elite... unless that's exactly what this cap is trying to do... 
and I saw this gorgeous sunset that totally blew my mind 
. The colors were so vibrant, I felt like I was right there in the painting 
. And have you ever noticed how the light changes when you're hiking? It's like a whole new world opens up 
. Anyway, back to credit cards... I'm not sure why anyone would want to limit interest rates that much 
I don't trust this one bit, somethin's fishy goin' on here...
. They're just trying to line their pockets with more cash. The fact that they think a 10% cap on credit card interest rates would hurt consumers is laughable. Who can afford those high-interest rates anyway? It's all about the banks making money off people who are already struggling 
. I mean, what if this cap ends up hurting people more than it helps them? That's what I wanna know...
everyone's gonna be stuck with super high interest rates and no way to get out of debt. trump's just trying to get re-elected by sucking up to the 1% again 
. 10% cap on credit card interest rates would be a good thing for the average person, you know? They could finally afford something without breaking the bank 
. And no, it's not like the Fed is run by some super powerful banker, they're supposed to regulate and make sure everyone plays fair 
. It's just rich people trying to make more money off other people's hard work 
and I don't blame Jamie Dimon for speaking up he seems like a straight shooter who's looking out for the best interests of his customers 
but at the same time I do think trump has some valid concerns about the economy and access to affordable credit 
? I'm sure it'll all work out in the end... 
so if we take a look at the stats on credit card debt in the US... it's already over $1.04 trillion 
but what's crazy is that the average American has around $4,293 in credit card debt 
now that's something to get excited about 
and btw, isnt it time we start thinkin about who's really benefitin from all these high interest rates on credit cards? 
it's not just about the money though, it's also about the people who need access to affordable credit right now. what if ppl can't afford those student loans or mortgages because of this cap? 
! Banks r making bank 
. Now you want to cap the rates and reduce their profits? It's just going to hurt consumers in the long run. I mean, who do you think gets hurt more? The person who can't afford a credit card or the bank that's trying to make a buck off them?