Jamie Dimon Mostly Sidesteps Trump Criticism – but Calls One Proposal an “Economic Disaster”

With input from CNN, CNBC, Axios, and Reuters.

JPMorgan Chase CEO Jamie Dimon spent much of his time at Davos carefully avoiding a direct clash with President Donald Trump. But when the conversation turned to credit cards, the gloves came off.

Speaking during a question-and-answer session Wednesday at the World Economic Forum in Switzerland, Dimon blasted Trump’s proposal to cap credit card interest rates at 10% for one year, calling it “an economic disaster.”

The comment stood out in a discussion where Dimon otherwise declined to weigh in on some of Trump’s most controversial positions – from immigration and trade to strained relations with Europe and NATO, including Trump’s renewed talk about the US annexing Greenland. Dimon even dodged a question about whether American CEOs are afraid to criticize the president.

But on interest rates, Dimon was blunt.

“It would remove credit from 80% of Americans,” he said. “And that is their backup credit.”

Trump floated the idea earlier this month, accusing credit card companies of “ripping off” consumers. He doubled down on it Wednesday in Davos, saying he would ask Congress to pass legislation imposing a one-year, 10% cap nationwide.

Dimon warned that while JPMorgan itself would survive such a move, the broader economy wouldn’t escape unscathed.

“The people crying the most won’t be the credit card companies,” Dimon said. “It’ll be the restaurants, the retailers, the travel companies, the schools, the municipalities – because people will miss their water payments and this payment and that payment.”

As a compromise, Dimon suggested what he called a “great idea”: test the cap in just two states before rolling it out nationwide. He named Vermont and Massachusetts – home to Sens. Bernie Sanders and Elizabeth Warren, both longtime advocates of strict interest rate caps – drawing laughter from the Davos audience.

“People on the left would learn a real lesson,” Dimon said.

Despite the strong language, Dimon said he doubts Congress will ever pass a nationwide cap. Banking analysts largely agree, noting that such a move would require legislation and faces skepticism from both parties. House Speaker Mike Johnson has already expressed concerns about unintended consequences.

Banks, meanwhile, are pushing back behind the scenes. Several large credit card issuers told CNBC they haven’t changed their rates in response to Trump’s call, though none wanted to be identified as openly defying the president. Financial stocks briefly dropped after Trump first raised the idea earlier this month.

Beyond credit cards, Dimon urged caution in rushing to judgment on Trump’s broader agenda.

“You guys always want a binary answer to everything,” he said when asked whether Trump’s foreign policy was making the world safer. “I don’t know yet.”

He also said while he has concerns about current immigration enforcement, he was equally critical of the Biden administration’s record.

“That does not mean I like it all,” Dimon said. “I think it’s time for people to take a little bit of a deep breath.”

Dimon also used the Davos stage to flag another looming issue: job losses from artificial intelligence. He said businesses will deploy AI quickly – and jobs will disappear as a result – whether governments like it or not.

“Will it eliminate jobs? Yes. Will it change jobs? Yes,” he said.

Dimon argued governments should step in to help workers retrain and slow layoffs where possible to avoid social unrest, even suggesting incentives for companies to keep people employed longer.

“If we have to do that to save society,” he said, “we would agree.”

For now, though, it was the credit card proposal that drew Dimon’s sharpest warning – a rare moment of open confrontation with Trump from one of Wall Street’s most influential voices.