(Bloomberg) — The first two years under Donald Trump’s second term could be “quite impactful” if policy changes are made on tax, deregulation and crypto, according to Stefan Gratzer, managing director at J.P. Morgan Private Bank.
“One really differentiating thing Trump had in his policy was about crypto, so let’s see how this plays out,” Gratzer, who is head of institutional wealth management for Switzerland at J. P. Morgan, told a conference in Kuwait on Sunday.
“This could be completely new, and nobody knows what this is going to mean. There’s a lot of talk about deregulation that is obviously beneficial for banks like us at the moment but again, we need to see.” Optimism has been high that Trump’s pro-growth promises, built around tax cuts and deregulation, will unlock another round of gains in an already flourishing economy, just as the Federal Reserve tilts toward an easy-money stance.
Many expect Trump’s policy promises, including a flurry of tax cuts, to turbo-charge economic growth, driving new business for lenders. Gratzer said Trump’s plans to cut taxes are key. “If you buy a share of the company, you’re obviously buying their earnings in the future minus the tax.
If the tax is lower, your share price is higher. I think that’s a bit what we’ve seen in the last week.” “He obviously has the House and the Senate now on his side, so it could be that for the next two years we see this direction,” Gratzer said, while noting that aft.