U.S. bank executives expressed their anticipation of ongoing policy uncertainties as President Donald Trump's second administration takes form but remained positive about the economic outlook.
Since assuming office the previous month, Trump has introduced a series of executive orders, tariffs, and personnel changes. In the banking sector, he criticized the largest U.S. lenders for being conservative with customers and dismantled a consumer financial watchdog over the weekend.
Goldman Sachs CEO David Solomon, speaking at a Miami conference on Tuesday, remarked that the administration is pursuing a more "growth-oriented agenda." However, he noted the complex nature of the policies' ultimate direction, stating, "The regulatory environment should provide a constructive tailwind, but the overall policy landscape remains uncertain." Solomon highlighted immigration, tax, energy, trade, and fiscal policy as key areas of uncertainty affecting market volatility.
Markets are expected to experience "stops and starts," which could benefit Goldman's trading business. Solomon mentioned that trading activity on Monday normalized after two weeks of dynamic movements following a series of executive orders and sanctions announced by the administration.
During the same conference, Wells Fargo's finance chief Mike Santomassimo indicated that clients are optimistic about the economic future, considering mergers and other activities. He stated, "There is optimism that the administration will promote growth and business, removing obstacles hindering economic growth." Despite policy uncertainties affecting deal-making decisions, Santomassimo reiterated confidence in seeing positive momentum.
Keycorp CEO Chris Gorman mentioned that despite uncertainties surrounding new import tariffs, clients remain optimistic. He referred to a bank client poll revealing that 62% anticipate working on strategic mergers and acquisitions in the coming year.