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Investing.com – January will be an important month in American politics, and there are important events around the corner.
In a report this week, TD Cowen identified four reforms aimed at managing headlines and changing policy agendas.
Trump’s Return to the Presidency
On January 20, Donald Trump will officially begin his term as president. According to TD Cowen, “a number of executive orders” are expected on his first day, including a freeze on pending federal legislation.
The Bank believes that these orders are unlikely to affect private institutions such as the Federal Reserve. Trump is also expected to make important decisions on agencies such as the SEC, CFPB, and FHFA, with possible surprises in areas such as immigration and international relations.
Key Financial Policy Options
Resuming Trump’s hiring in key financial positions is another focus. As TD Cowen notes, “Labor was a policy in the first Trump administration,” highlighting the importance of his picks for roles such as Comptroller of the Currency, Director of the FHA, and Chairman of the FDIC. It is expected that these people will be asked to set financial management and policy levels in the coming months.
Election of Speaker of the House
The GOP will work to elect the Speaker of the House, with Mike Johnson as the leader. However, TD Cowen points out that the margin of victory is narrow, Johnson needs 218 votes if all members participate. “The margin is so narrow that the risk is high,” warns TD Cowen, suggesting that there could be chaos in the process.
Restructuring discussions about cannabis
The DEA’s action will move into the evidentiary phase regarding the reclassification of cannabis as a Schedule 3 substance. TD Cowen expects this to generate headlines, though any final decision will rest with the administration. of Trump.
“We continue to believe that Team Trump will restore the flow of cannabis to Schedule 3 although we may need to wait until the end of the year for the process,” the bank said.
