Wisconsin banks are going into 2025 with a “mixture of hope and hesitation,” as optimism about the policies of the incoming Trump administration meet uncertainty and economic headwinds.
That’s according to Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. The group yesterday released its annual Wisconsin Economic Report, which compiles a series of sector outlooks from leaders of key industries within the state.
In her overview, Oswald Poels said bankers in Wisconsin will be “closely watching” how Donald Trump in his second term may bring “much-needed regulatory relief” to the financial sector. They’re looking for a pause on new federal regulations being introduced, she said, along with hoping that “overly burdensome” regulations will be pared back.
As an example, she points to new Section 1071 requirements from the Consumer Financial Protection Bureau, which are meant to collect more data on small business loans. Oswald Poels says they’re being criticized by banks for creating an “excessive” administrative burden for them and their small business customers.
“The requirements go far beyond the original intent of the DoddFrank Act and could negatively impact small businesses by making access to credit more complicated and costly,” she said in the report.
At the same time, bankers are feeling cautious about the economic landscape writ large, Oswald Poels said. She wrote the “path to economic recovery is still uncertain and a significant rebound may take longer than expected.”
The effects of inflation were a central topic in several of the sector overviews in the report.
Bradley Uken, the Wisconsin Farm Bureau’s chief administrative officer, notes the ag industry has been operating under an extension of the “outdated” 2018 Farm Bill.
“While provisions in the bill have allowed some modest adjustments to account for market changes, bill authors at the time had no way to anticipate the impacts of a global pandemic, the highest inflation in forty years, or major geopolitical developments hitting prices for the products farmers buy and sell,” he wrote.
He calls for a new Farm Bill to be signed into law, noting farm safety net programs and other standards “must be updated” to work as intended.
Meanwhile, Wisconsin Grocers Association President and CEO Mike Semmann says the state’s grocery industry will continue to face “razor-thin margins” and stiff competition this year as inflation remains top-of-mind for consumers.
“Since the inflationary peak, food price inflation remains on a solid path and prices on staple items this past holiday season experienced areas of disinflation,” he wrote. “Overall, inflationary pressures and the resulting increase in the cost of goods and services will likely persist, placing continued financial burdens on American households.”
Another overview from Wisconsin Technology Council President Tom Still touts the resilience of Wisconsin’s economy, highlighting some high-profile projects and trends in venture capital investing.
Eric Borgerding, outgoing president and CEO of the Wisconsin Hospital Association, addresses the “unprecedented financial pressure” facing health care providers as well as demographic trends driving higher demand for care.
And Wisconsin Realtors Association President and CEO Tom Larson and Construction Business Group Executive Director Robb Kahl weigh in on their interconnected sectors. Topics explored in these overviews include an increase in home sales, unmet demand for housing, opportunities presented by infrastructure projects, workforce challenges and much more.
Plus, Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer explores the potential impacts of the next Trump term on a variety of topics, ranging from taxes, tariffs and energy to border security, mining and the regulatory environment.
See the full report here.