Bank executives gathered in Washington said that investors became cautious about the trend of the US election, the Russia-Ukraine conflict and the Middle East war.
Charlie Scharf, CEO of Wells Fargo, said that the uncertainty surrounding the election has caused people to pause investments to some extent.
When we observe loan demand and confidence in businesses, we see that people hope to understand where we are going and what policies will be through the election cycle, "he added.
It is reported that investment bankers and lawyers told the media last month that companies are delaying their plans to seek transformational deals until after the US presidential election, as they hope the new government's regulatory and economic policies will be more determined.
Bank of New York Mellon (BNY) CEO Robin Vince agrees with this, adding that clients hope to wait until the situation becomes clear before making major decisions. US Vice President and Democratic presidential candidate Kamala Harris and her opponent, former Republican President Donald Trump, are still evenly matched.
Tim Adams, CEO of the Institute of International Finance, an industry organization, stated that the election results will not only affect fiscal, trade, and technology policies, but also impact the relationship between the United States and other countries, which has raised concerns among investors.
Wall Street executives are concerned that Trump's plan to increase import tariffs may reignite inflation, and his promised tax cuts may widen the US deficit.
However, at a meeting on Wednesday and Thursday, they also expressed optimism about the improvement in economic activity as policy clarity emerged after the November 5th US election. Bankers hope for a rebound in demand and investment next year.
I do believe that investment will rebound after the election, "said Ana Botin, Executive Chairman of Santander Bank
Geopolitical risks
In addition, the Russia-Ukraine conflict and the war in the Middle East have increased uncertainty and deterred investors.
JPMorgan CEO Jamie Damon said, "It may decrease over time... but it may not. Mistakes happen from time to time, see how we got into World War II