Jamie Dimon says U.S. should impose Trump's credit card rate cap in Vermont and Massachusetts

JPMorgan Chase CEO Jamie Dimon connected Wednesday advocated for a trial of President Donald Trump's proposed 10% cap connected recognition paper involvement rates successful 2 U.S. states: Vermont and Massachusetts.

Dimon, speaking connected a sheet astatine the World Economic Forum astatine Davos, Switzerland, addressed a question astir Trump's bid for banks to voluntarily bounds their involvement rates for a year. The president had called for the little rates to instrumentality effect connected Tuesday.

Several ample recognition paper lenders contacted by CNBC connected Tuesday said they had made nary changes to their involvement rates, but they each declined to beryllium identified arsenic defying Trump's proposal.

"It would beryllium an economical disaster," Dimon said Wednesday. "In the worst case, you'd person a drastic simplification of the recognition paper business" for 80% of Americans, helium said.

In net conference calls past week and down the scenes, banks person pushed backmost against Trump's bid this period to voluntarily forgo billions of dollars successful revenue.

Their main argument, that terms controls volition effect successful lenders canceling accounts for galore paper customers, has resonated with respective Republican lawmakers, including House Speaker Mike Johnson. Most banking analysts judge that Trump would request authorities to enact a nationwide headdress connected paper rates.

Dimon past said helium had a "great idea" to assistance quell disagreement implicit the projected paper cap, suggesting that the U.S. authorities enforce the pricing controls connected Americans successful conscionable 2 states.

Vermont and Massachusetts are the location states of Sens. Bernie Sanders and Elizabeth Warren, respectively, some of whom enactment a measure capping paper rates astatine 10% for 5 years. Dimon didn't notation the lawmakers by sanction Wednesday.

The U.S. authorities "should unit each the banks to bash it successful 2 states, Vermont and Massachusetts, and spot what happens," Dimon said, drafting laughter from the WEF audience.

Dimon said "the left" and radical who reason for terms controls "will larn a existent lesson, and the radical crying the astir won't beryllium the recognition paper companies," helium said.

"It'll beryllium the restaurants, the retailers, the question companies, the schools, the municipalities, due to the fact that radical miss their h2o payments," helium said. "It would beryllium thing other to watch."

Dimon added that JPMorgan was readying connected giving the Trump medication its investigation connected what would hap nether a nationalist recognition paper complaint cap.

"I deliberation it's incorrect for the authorities to get progressive extensively successful pricing of stuff, but I got to woody with the satellite I got," Dimon said.