Many corporate executives and business owners are feeling optimistic about President Trump’s fuel economic growth as it can increase their profits. But, the borrowing habits tell a different story.
Many companies are feeling less certain about Trump’s agenda to deregulate and cut taxes, said nation’s top bankers on Thursday. Industries are becoming too much conscious to take new debts as it is increasing doubts about president’s plan to get pro-business measures like tax cuts. The borrowing will be costlier when the Federal Reserve is planning on raising interest rates.
A leading lender for many businesses and American consumers, Wells Fargo, said that its loans which are outstanding in the first quarter had been increased by just 1% from an earlier year, while Citigroup said that its lending growth was not that much larger and has overall loans rising with 2%.
The earning reports from nation’s largest banks indicate that the corporate America and Wall Street were giving a more sober classification to the ease of the growth-focused Trump agenda.
John Shrewsberry, the chief financial officer of Wells Fargo, said in an interview that “They all want to believe that there is more growth ahead, but they need to see something out there before they act.”
“I would have to wonder how that would be consistent with deregulation or boosting growth, which is the goal of this administration,” Mr. Gerspach, the Citigroup chief financial officer, said on Thursday.