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White House Intensifies Push for 10% Credit-Card Rate Cap, Clashes With JPMorgan’s Dimon

Public pressure is escalating, with legal experts saying a nationwide cap would likely require congressional action.

Overview

  • White House adviser Peter Navarro publicly demanded Jamie Dimon lower JPMorgan’s card rates, calling current charges of roughly 22% to 30% unacceptable.
  • An official White House “365 Wins” post claims the president directed credit card companies to cap rates at 10%, though the Jan. 20 target passed without broad issuer changes.
  • Banking groups and major issuers warn a 10% ceiling would sharply restrict access to credit, with Dimon predicting severe cutbacks and the ABA citing extensive potential losses of credit.
  • Average credit card APRs hover around 19.7% to 21.5%, highlighting how steep a reduction a 10% limit would represent, according to Federal Reserve data.
  • A bipartisan Senate bill from Bernie Sanders and Josh Hawley proposes a five-year 10% cap, while the White House signals it will work with Congress after questions about unilateral authority.