The Evolution of Bank Bosses Expecting US Policy Uncertainty to Persist under Trump

The Evolution of Bank Bosses Expecting US Policy Uncertainty to Persist under Trump

As President Donald Trump's second term takes shape, bank executives are bracing themselves for ongoing policy uncertainty. Despite this unpredictability, they remain optimistic about the economic outlook.

Since taking office, Trump has introduced a range of executive orders, tariffs, and personnel changes that have sent shockwaves through the financial industry. In recent weeks, he has accused major US lenders of shutting down accounts of conservative customers and dismantled a consumer financial watchdog. This uncertainty is expected to persist, according to top bankers.

At a Miami conference on Tuesday, Goldman Sachs CEO David Solomon emphasized the importance of policy certainty in creating a constructive regulatory environment. The regulatory environment should be a tailwind for the industry, he said, but the broad policy landscape remains uncertain. With ongoing shifts in areas such as immigration, tax, energy, trade, and fiscal policy, Solomon noted that this uncertainty will create volatility until clarity is achieved.

Goldman Sachs' optimism about the economic outlook was echoed by Wells Fargo's finance chief, Mike Santomassimo. While clients are cautious due to policy uncertainty, they are still considering mergers and other strategic initiatives. The momentum will continue, Santomassimo said confidently.

JP Morgan Chase also expects market activity to pick up, but notes that some companies are taking a wait-and-see approach, awaiting more clarity on economic policies. According to Chief Operating Officer Jennifer Piepszak, clients are optimistic about their prospects but want to see greater certainty before committing to significant investments.

Keycorp CEO Chris Gorman expressed similar sentiments, citing a poll among the bank's clients that showed 62 percent expect to engage in strategic M&A over the next year. Despite concerns about new import tariffs, Gorman believes that clients remain upbeat about their prospects.

As the Trump administration continues to shape its policies, it remains to be seen how these expectations will unfold. One thing is certain bank bosses and investors alike will be closely monitoring developments for signs of policy certainty and clarity in the coming months.

Key Takeaways

Bank executives expect ongoing US policy uncertainty under President Donald Trump's second term.
Despite this uncertainty, they remain optimistic about the economic outlook.
The regulatory environment may create a constructive tailwind, but broader policy landscape remains uncertain.
Markets will likely experience stops and starts that can be beneficial for trading businesses.
Clients are cautiously optimistic about strategic M&A over the next year.

Keywords US policy uncertainty, Trump administration, bank executives, economic outlook, regulatory environment, market activity.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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