Recently, the plan proposed by Trump to cap credit card interest rates at 10% has sparked intense debate in the financial circle. Major banks like JPMorgan Chase have come out against it, and their core arguments are worth considering.

On the surface, limiting interest rates seems to help consumers save money — but the warnings from JPMorgan Chase might hit the nail on the head: can policies truly solve the problem?

The logic here is straightforward. Banks charge differentiated interest rates to different customers primarily for risk pricing. Once interest rates are capped at 10%, banks lose the ability to price risk accordingly. What’s the result? High-risk, low-income borrowers may no longer be able to get loans.

More realistically, banks are not fools. With interest income restricted, their options change: tighten approval standards, lower credit limits, reject high-risk applicants, or compensate for losses through other fees. In the end, those who need credit the most might find themselves unable to borrow a single penny.

History has repeatedly proven this pattern — price controls often cause more trouble than the problems they aim to solve. Money doesn’t disappear; it just flows elsewhere. On a macroeconomic level, credit tightening suppresses consumption, which in turn puts pressure on the entire economy.

So, this reform may seem to help ordinary people, but in reality, it could harm the most vulnerable groups. While JPMorgan Chase’s motivation is to protect its own interests, the economic logic they point out cannot be ignored.

What’s your take?