He was a wildcard candidate with little experience of politics, and so his presidency has been both controversial and unprecedented.
Many have been left wondering what the financial landscape will look like once his run as president has finished, given that he has probably been one of the most divisive presidents in history. Here are some of the potential outcomes of his presidency.
One of the major feelings Trump has created amongst those operating in the financial sector is one of lasting uncertainty. Traders investing in the markets will by now be used to his unpredictability and habit for making outlandish statements (which can affect market behaviour).
He is changing the way the establishment is viewed, and his reputation as a volatile character has led many to approach investments and all things financial with a hint of caution.
Suffering Green Energy Sector
As one of Trump’s many controversial moves, he appointed fossil fuel enthusiast Daniel Simmons to the Office of Energy Efficiency and Renewable Energy, a move which clearly undermines the department’s goals. This could have a number of financial consequences in the future.
It represents a shift away from green energy investment, and could significantly hamper the progression of businesses/companies operating in the green energy sector. Given that many businesses outside the green energy sector have invested in adopting greener systems, this move could mean that their operations become more expensive to run.
Britain’s exit from the EU was another major shock of 2016, and the president has wasted no time in bringing up the idea of a trade deal between Britain and the US. This could well be a pattern for the future, although many of his statements have suggested he supports an isolationist agenda.
Once again, the uncertainty surrounding his decision making and actual direction as president prevents anyone from truly knowing whether trade deals are a realistic option. It is likely that he will be difficult to negotiate with as such a divisive and volatile character, but more trade deals are nonetheless a realistic eventuality.
When he was elected, Trump announced his opposition to increased banking regulation, making it clear that he wants to move towards more of a free market style economy. Many see this appetite for deregulation as dangerous, especially after the disastrous financial crash in 2008, the effects of which are still being felt today.
It could result in large financial institutions having more power and potentially dwarfing smaller businesses. It is unlikely that deregulation will be excessive, however, as there would be too many unpredictable consequences for those with less financial security.
There could be many significant changes to the financial landscape during Trump’s presidency, and his support in the election suggests that many Americans support his policies. It remains to be seen exactly what changes will be made, but the financial world will no doubt face a nervous wait as it prepares for an uncertain future.