President Trump has now been in office for over 100 days and while 100 is just a number there has been a lot of activity in the White House recently that has quite a few implications for you as a financial consumer...
Trump has vowed to lift some regulatory restrictions from the financial industry that could potentially impact you as an investor. Recent comments suggest the President has a negative view of Dodd-Frank (legislation enacted following the 2008 crisis) which he believes restricts lending to small businesses and we could see some of those restrictions lifted in the days to come. Trump also chose to delay implementation of the Fiduciary Rule which would extend the fiduciary standard to a broader definition of financial institutions. The rule was scheduled to go into effect April 10th, but will now go into effect June 9th. Additionally, under the Obama administration, municipalities were encouraged to create automatic Individual Retirement Accounts for workers who didn’t have access to employer-sponsored plans. Earlier this month Trump issued a resolution that nullified those rules. Most of these actions reduce protections for consumers but also free major banks from previous restrictions which could boost their business and potentially have a positive impact on their earnings.
Last week the White House released a tax reform plan that would reduce the number of tax brackets and could potentially increase the standard deduction. The plan would also eliminate the alternative minimum tax – an alternative tax that applies to the wealthy. The plan could also limit the deductibility of some other items like state and local income taxes. It’s too early to know whether this plan will pass and what the impact will be for the average taxpayer, but we will be sure to keep you in the loop as more information becomes available.
In March a bill was introduced to replace Obamacare but was pulled due to lack of support. At the time, President Trump told lawmakers that he was moving on, but has since suggested that he may be willing to try again.
Equity markets experienced positive returns during Trump’s first 100 days with several major indexes exceeding 5% so far this year. However, returns have been mixed in recent weeks as the markets try to gauge what the president will do next and what impact that will have on the economy.
In addition to the activities of the White House, there is a lot going on in the world from turmoil in North Korea and the Middle East to tension between Great Britain and the UK as Brexit looms closer. While it’s impossible to predict the future, we remain diligent in understanding our current state and continue to look for ways to cautiously march forward.
Woolley, Suzanne. "What Trump Has Done for (and to) Your Finances." Bloomberg. April 28, 2017. https://www.bloomberg.com/news/articles/2017-04-28/your-money-in-trump-s-first-100-days-a-highlight-reel.