World’s biggest bank has stunning rebuke for Trump over president’s credit card plan

America’s biggest bank has warned it could slash credit-card availability if President Donald Trump pushes through plans to cap interest rates at 10 percent. 

The warning comes as Trump has signaled he wants to dramatically lower the cost of credit cards, which currently carry some of the highest interest rates faced by consumers. 

‘Instead of lowering the price of credit, we’ll simply reduce the supply of credit — and that will be bad for everyone,’ said Jeremy Barnum, the chief financial officer of JPMorgan Chase.

Barnum said banks would have to consider ‘everything’s on the table’ — including legal action — if forced to radically change how cards are priced.

He made the comments on a call with reporters following JPMorgan’s fourth-quarter earnings report, after being asked whether banks would try to block Trump’s proposal. 

‘Our belief is that actions like this will have the exact opposite consequence to what the administration wants for consumers,’ Barnum said. 

The average credit card rate interest rate stands at 19.7 percent, according to a weekly survey from Bankrate.com — nearly double the level Trump wants.

Banks argue that capping rates would fundamentally change how credit cards work. 

Cards are profitable largely because high interest on unpaid balances helps offset fraud, defaults and rewards programs.  

If lenders are unable to charge enough interest to cover those risks, they may cut or stop issuing credit cards or not offer them to entire sets of borrowers, such as poorer people.  

That could mean fewer approvals, lower credit limits, or banks pulling back from issuing cards altogether, particularly to higher-risk customers. 

Many Americans rely on credit cards to buy things they might not have cash for immediately, and then pay off when the paycheck arrives.  

As well as hitting individuals, it could have broader knock-on effects. A sharp reduction in access to credit could also hit consumer spending — a major driver of the US economy. 

Barnum declined to directly address whether JPMorgan would comply with Trump’s demand — which would kick in on January 20, if approved. 

It remains uncertain how Trump’s mandate would be enforced. 

The US currently has no law limiting credit card rates. A bill introduced last year by Senators Josh Hawley and Bernie Sanders would cap APRs at 10 percent for five years, but that legislation remains stalled in Congress. 

The warning comes as JPMorgan Chase is locked in a bitter battle with American Express in the credit-card wars, with both lenders aggressively piling on perks while hiking annual fees.

In June, Chase refreshed its Sapphire Reserve card, adding new travel benefits, boosting rewards to 3x points on dining and travel, and raising its annual fee to $795.

American Express followed in September with a major overhaul of its Platinum card, lifting its annual fee from $695 to $895 while adding a slate of new credits — including $400 at restaurants, $600 at hotels and $300 at Lululemon — alongside 5x points on flights and expanded airport lounge access.

To sweeten the deal, Amex has dangled sign-up bonuses of up to 175,000 points, convertible into airline miles, for new customers who spend $8,000 in their first six months.