Banker: ‘We’re on a rollercoaster’ as Trump’s tax plan is implemented
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An accountant at the Wall Street firm McKinsey & Co. said Thursday that it is “extremely difficult” for financial advisers to keep up with the pace of changes that the Trump administration is imposing on the financial industry.
“As we move into 2019 and 2020, we’re going to see more and more of these new regulatory initiatives that are being imposed by the Trump Administration, including new rules on the derivatives market, the new tax rate, and the introduction of regulations that will affect the investment banking industry,” said Robert Riethmuller, a partner at McKinsey, in an interview with Politico.
“It is incredibly difficult to keep track of the pace at which these things are changing and to know exactly what the impact will be.”
Riethmsuller pointed to the fact that the U.S. has lost nearly half a trillion dollars in assets since the start of the year.
“I think we’re on the rollercoast right now,” Riethmia told Politico.
Riethmolders analysis echoes that of the Federal Reserve.
“The Federal Reserve is currently facing unprecedented conditions of high inflation and low interest rates,” the central bank’s chairwoman, Janet Yellen, said last month.
Rieshmuller said that McKinsey has a goal of “stabilizing” financial markets by 2018. “
This will increase demand for our financial services and financial intermediaries, which will drive up the prices of financial products, and this will further increase the volatility of our markets.”
Rieshmuller said that McKinsey has a goal of “stabilizing” financial markets by 2018.
“We have to stabilize, we have to stabilize the market,” he said.
“But we are not doing this alone.
We have a whole coalition of people who are all doing it together, so we need to all work together.”
Rythmsullers advice for investors: “The more markets are able to reflect the real world, the better.
And that is the kind of thing you have to watch for.”
Trump’s proposal to repeal Obama-era regulations on Wall Street is expected to spark another round of stock market turmoil.
Investors have been hit particularly hard by the impact of the Trump tax plan, which includes a $1.5 trillion cut in the corporate tax rate and a $2.5 billion cut in individual tax rates.
Trump has also proposed eliminating the Alternative Minimum Tax, which would leave millions of Americans with higher taxes than they would otherwise.
Trump is expected in coming weeks to unveil a proposal to lower the corporate income tax rate to 25% from 35%.
“The market is reacting,” Rythmullers warning about Trump’s plans comes as he has continued to try to gain support from Wall Street.
The Federal Reserve has cut its key interest rate by more than half in the past year, but has not yet taken action to increase interest rates in an attempt to help the economy.
An accountant at the Wall Street firm McKinsey & Co. said Thursday that it is “extremely difficult” for financial advisers…