The White House is intensifying pressure on JPMorgan Chase & Co. and its CEO, Jamie Dimon, to implement a cap on credit card interest rates. This demand aligns with President Trump’s broader efforts to address affordability concerns among American consumers. Peter Navarro, a White House trade advisor, publicly called on Dimon to reduce what he termed excessively high interest rates charged to consumers.
Navarro, in a Bloomberg Radio interview, directly addressed Dimon, stating, “James Dimon, lower your friggin’ credit card interest rates. You are a criminal the way you charge the American people at 22, 25 and 30 per cent and the president wants you to lower that.” He further suggested Dimon refrain from commenting on other public policies until the interest rate issue is addressed. JPMorgan Chase & Co. is a global financial services firm and investment bank headquartered in New York City. It offers a range of financial products and services including investment banking, asset management, and consumer lending.
President Trump’s proposal to impose a year-long 10 per cent limit on interest rates has faced resistance from major banks and credit card issuers. Dimon previously warned that such a measure could trigger an “economic disaster” in the US, potentially leading lenders to reduce credit availability for consumers. Bank executives contend that capping interest rates would disproportionately affect consumers with lower credit scores, potentially pushing them towards less regulated and more costly alternatives like payday lenders.
As the November midterm elections approach, President Trump is focusing on cost-of-living issues across various sectors, including finance, housing, and food. This push aims to demonstrate his commitment to addressing economic concerns, particularly as polls indicate that the economy is a top priority for voters, and his handling of it is viewed unfavourably, potentially impacting Republican chances of maintaining control of Congress.
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