Jamie Dimon says the US should impose an interest rate cap on Trump’s credit card in Vermont, Massachusetts

JPMorgan Chase CEO Jamie Dimon on Wednesday called for a test of President Donald Trump’s proposed 10% cap on credit card interest rates in two US states: Vermont and Massachusetts.

Speaking before a panel at the World Economic Forum in Davos, Switzerland, Dimon responded to a question about Trump ordering banks to voluntarily limit interest rates for a year. The president had called for lower interest rates to take effect on January 20.

Several major credit card lenders contacted by CNBC on Tuesday said they had not made any changes to their interest rates, but they all declined to be identified as challenging Trump’s proposal.

“It would be an economic disaster,” Dimon said Wednesday. “In the worst case scenario, you’ll have a significant decline in credit card business” for 80% of Americans, he said.

Dimon then said he had a “great idea” to help calm the dispute over the proposed card cap, suggesting that the US government impose pricing controls on Americans in just two states.

Vermont and Massachusetts are the home states of Sens. Bernie Sanders and Elizabeth Warren, respectively, and both have called for capping postpaid card rates at 10% for five years. Dimon did not mention the lawmakers by name Wednesday.

Dimon said, drawing laughter from those attending the World Economic Forum, that the US government “should force all the banks to do this in two states, Vermont and Massachusetts, and see what happens.”

“The left” and people who argue for price controls “will learn a real lesson, and the people who will cry the most won’t be the credit card companies,” Dimon said.

“It will be restaurants, retailers, travel companies, schools and municipalities, because people are missing out on water payments,” he said. “It will be something else to watch.”

This story is evolving. Please check back for updates.