JPMorgan Chase (NYSE: JPM) is in focus this morning after its chief financial officer, Jeremy Barnum, said the bank could “fight” President Trump’s recently proposed cap on credit card interest rates.
“If you wind up with weakly supported directives to radically change our business that aren’t even justified, you have to assume that everything’s on the table,” he noted on the earnings call today.
JPMorgan stock is inching down on Jan. 13 after the financial services behemoth posted a surprise decline in investment banking fees for its fiscal Q4.
Can Trump’s proposal trigger a further decline in JPMorgan stock?
President Donald Trump has already told reporters that banks failing to follow the directive – to cap credit card interest rate at 10% for a year – by next Tuesday will be “in violation of the law.”
But while Barnum didn’t explicitly state that JPMorgan won’t comply, his remarks sure imply that the bank has no intention of cutting the annual percentage rate (APR) in half by Jan. 20.
Why? Because it would pressure one of its most lucrative business segments – and “begging credit card companies to play nice is a joke,” as Senator Elizabeth Warren put it earlier this week.
For investors, what all of this really means is: JPM stock remains worth owning if you believe the bank will win against President Trump and retain the credit card interest rate at the current 19.7%.
Is JPM strongly positioned to win against President Donald Trump?
Interestingly, there’s precedent for banks and credit card companies to win against federal attempts to cap card APRs.
In 2025, they blocked efforts by the Consumer Financial Protection Bureau (CFPB) to reduce card interest rates.
A similar bill from Sen. Josh Hawley and Sen. Bernie Sanders has stalled in Congress as well.
This may prove sufficient for long-term investors to stick with JPMorgan shares at current levels.
In fact, Wall Street is maintaining its bullish stance on the investment bank as well.
The consensus rating on JPM remains at “overweight” – with the mean price target of about $344 indicating potential upside of another 10% from here.
Note that the bank stock currently pays a healthy dividend yield of 1.86% as well.
How to play JPM shares on the post-earnings dip?
JPMorgan and its peers have a strong chance of blocking Trump’s attempt to cap credit card APRs because the proposed policy change isn’t even in Americans’ best interest.
Forcing card companies to cap interest rates at 10% would simply lead to a meaningful decline in credit availability – potentially driving borrowers to less-regulated, more costly alternatives.
Plus, it will reduce spending, which could hurt the overall resilience of the US economy as well.
“Actions like this will have the opposite consequence to what the administration wants. Instead of lowering the price of credit, we’ll reduce the supply, and that will be bad for everyone,” Barnum concluded.
This narrative reinforces that JPM shares are worth buying on the post-earnings dip today.
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