How the Upcoming Election Might Impact Your Finances

In November, Kamala Harris and Donald Trump will face off for the office of the presidency. While there are some staunch ideological differences between the two candidates, many people are primarily concerned with the ways each politicians’ financial policies would impact their bank accounts.

Known Quantities

Interestingly, this election has a bit of a wrinkle to it. Trump has been president before, taking office in 2016 for one term. Harris is the current vice president. As such, we’ve got a good grasp on the kind of policies we could expect from both of them, and that makes it easier to predict the impact they would have on Wall Street from the Oval Office.

Harris on Banking Fees

Harris has been adamant about tackling “junk fees” from banks, such as late fees, checking account balance fees, payoff amounts for loans, and more. She’s considered new legislation as a way to prevent the $120 billion per year that Americans pay in these types of fees from continuing any longer.

Trump on Banking Fees

For his part, Trump hasn’t made any mention of the “junk fees” that Harris has railed against. However, when he was president, his usual track with such things is to leave those issues to banks. In fact, Trump tends to prefer a lack of regulation when it comes to banks across the board.

Trump on Regulation

When he was president, Trump was very positive about banking deregulation. He prefers a hands-off policy that sees smaller and medium-sized banks enjoying more autonomy and freedom. Critics say this approach could lead to banking crises, but supporters say this policy is great for the economy and helps empower business.

Harris on Regulation

Harris, as a Democrat, has not voted for banking deregulation. As of yet, she’s made no formal claims about her opinions on the matter, but it seems unlikely she’d break with her prior track record and suddenly support deregulation. Some critics feel this makes her anti-business, while others say this is a “common sense” approach to avoid failures like the 2008 crisis.

Trump on Interest Rates

The high federal funds rate has been a topic of consternation for economists and investors for a few years now as the Federal Reserve fights to get inflation back under control. The president doesn’t typically have much say over Fed policy, though the executive branch does control things like Fed nominees and appointing the central bank’s chair. Trump himself has expressed interest in the president having more say over monetary policy, however, meaning he’s likely interested in expanding the president’s pull over the Fed.

Harris on Interest Rates

Harris, unlike Trump, has noted she doesn’t desire to have the office of president exert more control over monetary policy. In fact, she’s doubled down on the Fed’s independence, stating in interviews that she would “never interfere in the decisions that the Fed makes.” This is in line with typical White House policy, as prior presidents have largely left the central bank to its own devices.

Harris on Crypto

Crypto enthusiasts will be pleased to hear that Harris isn’t openly opposed to cryptocurrencies. A policy advisor in her camp has stated that she’ll support legislation that would grow digital assets, which is the surest indicator of her support yet. Still, her full platform regarding the digital currencies isn’t known.

Trump on Crypto

Trump’s viewpoint on crypto has actually shifted over time. As recently as his time in the White House, then-President Trump openly referred to crypto as a “scam” and described it as “not money,” and with “value … based on thin air.” More recently, the former president appears to have completely reevaluated this stance and wants to “defend the right to mine Bitcoin” and the right for self-custody of digital currency. It appears that neither candidate would be a poor choice for crypto supporters in light of Trump’s updated stance.

Bottom Line

Generally speaking, there aren’t too many surprises for those familiar with the typical Republican and Democrat fiscal policies between Trump and Harris. Trump would prefer laxer regulations and freer markets, while Harris would prefer higher taxes on the wealthy and more social programs. Whether or not any of those things are good ideas, of course, is up to each voter to decide.