Fitch's New Rating Chief: Navigating Trump's Policy Shifts

As the US heads towards a second Trump administration, the world watches to see who will be part of the new administration and which campaign promises will come to fruition. Richard Hunter, the new Chief Risk & Credit Officer of Fitch Ratings, will have his work cut out for him as he navigates the potential changes in US economic policy under a renewed Trump presidency.



Trump's economic policies during his presidency were mainly characterized by tax cuts, trade wars and tariffs, deregulation, and restrictions on immigration. These policies had significant impacts on the economy, both positive and negative. On the positive side, the Trump economy experienced notable achievements, including a strong economy before the COVID-19 pandemic, job creation, low unemployment rates, and the effects of tax cuts and deregulation. However, there were challenges during Trump’s presidency, such as the economic slowdown in 2019, the pandemic in 2020, an increase in the annual deficit, and controversies surrounding trade wars and tariffs.

As the new rating chief, Hunter will need to consider the potential short-term gains and long-term risks of Trump's proposed tax cuts and deregulation. Trump's proposed policies include extending and expanding the Tax Cuts and Jobs Act (TCJA) and deregulation. These policies could have significant impacts on the economy and markets, but Hunter must also consider the potential long-term risks, such as higher borrowing costs for the US economy and negative externalities from deregulation.



Hunter will also need to consider the potential impacts of Trump's proposed trade policies on companies' supply chains and financial health. Trump's "America First" agenda includes imposing tariffs on goods from China and other countries, which could lead to higher input costs for companies, potentially affecting their creditworthiness. Additionally, changes in immigration policies could impact companies' workforces and operations, potentially affecting their profitability and creditworthiness.

In conclusion, Richard Hunter, the new Chief Risk & Credit Officer of Fitch Ratings, will need to adapt to potential changes in US economic policy under a renewed Trump presidency. By considering the potential short-term gains and long-term risks of Trump's proposed policies, as well as the potential impacts on companies' supply chains and workforces, Hunter can help Fitch Ratings maintain its market-leading position in credit ratings and research. As the political and economic landscape continues to evolve, Hunter and his team will need to stay informed and engaged to protect the quality of Fitch's credit ratings.