Activity and Pending Action Under a Trump Presidency So Far
April 12th, 2017
I stated in my last newsletter that things would get interesting, and they have. We are less than 100 days into the Trump Presidency, and we have already seen lots of activity. Unfortunately, it has included finger-pointing and bickering as well. We have a new Supreme Court justice but no agreement yet on healthcare, immigration, taxes or banking reform.
The banking industry anticipated that reform would come early. While the timeline is uncertain, I still believe we will see reform on the Dodd Frank legislation, particularly with some easing of mortgage restrictions. I’m hopeful those in Washington will start working together to make progress on this and other initiatives discussed.
As anticipated, the Fed raised key interest rates again in March. We will likely see more of this as the year progresses. Recently, Janet Yellen, the Federal Reserve chairwoman, stated that the Fed was shifting its focus from stimulating the economy to keeping growth on an even keel. She said the economy was “pretty healthy,” thanks in part to the Fed’s long-running stimulus campaign, which the central bank is moving to end. That means the Fed will start selling securities into the market instead of buying them with the intent to curb inflation pressures.
While most of these legislative issues are out of our direct control, contacting your elected representatives to explain how issues affect your business can have a profound impact.
It appears, at least for now, that the economy is showing some favorable growth trends. Unemployment is falling, and the foreseeable economic future looks positive. However, much uncertainty remains in our political and international environment.
As a business owner, talk with your banker about how to best navigate the current climate. Prepare for higher rates. Maintain a manageable amount of leverage, and keep track of your cash flow.
Bank SNB offers a variety of services to help you manage and monitor cash flow. This newsletter highlights our merchant services products, but there are many more. Bank SNB’s treasury management representatives can evaluate your business cash flow process and make some suggestions. It costs nothing to take a look and may yield valuable insight to improving the way you manage your cash flow.
Bank successfully with Bank SNB.