JPMorgan CEO says credit card rate cap will be an 'economic disaster'

JPMorgan ChaseCEO Jamie Dimon said on Wednesday (January 21) a proposed 10% cap on credit card interest rates by the Trump administration would be an economic disaster, but added that the bank would survive the impact.

"It would remove credit from 80% of Americans, and that is their back-up credit," the long-time chief of the largest U.S. bank said at the World Economic Forum in Davos.

U.S. President Donald Trump called for the cap earlier this month, without detailing how the plan would be implemented, while Wall Street analysts said such a move would require legislation and had slim odds of getting clearance.

Banking industry bodies have strongly pushed back against the move, arguing that it would impact credit access for everyday consumers.

Production: David O'Sullivan/Reuters