Inside C-suite, Trump’s first year gets mixed reviews: CFO survey

President Donald Trump’s approval rating was slipping While Americans were unhappy with his handling of the economy. At a time when stocks are still near record highs and corporate profits are strong, is there another rift between Wall Street and Main Street?

Not exactly, according to the results of the latest CNBC CFO Council Survey.

According to CNBC’s Q4 CFO Council Survey, C-suite executives and the public don’t differ much from each other in how President Trump is running his business during the first year of his second term; But even as the labor market weakens and consumers struggle with lower income levels, the majority of financial managers are still optimistic about the U.S. economy. CFOs surveyed cited consumer demand as the biggest risk to their businesses, reflecting widespread concerns about Americans maintaining their spending levels, but CFOs don’t see an economic cliff ahead.

More than half (59%) of CFOs say there will be no recession next year, while 73% of CFOs describe themselves as optimistic about the economic outlook. Very few CFOs, only two predict a correction of at least 10% in the stock market, and no CFOs see a bear market ahead. But most CFOs think stocks will be stuck in a trading range before reaching a new record high. Dow Jones Industrial AverageConsidering the index may not rise above 50,000 in the foreseeable future, it’s a reasonably cautious outlook after shares have posted a double-digit gain year-to-date (currently 16%). S&P 500).

Despite this positive outlook on the economy and the market, and the extension of tax cuts sought by corporate America, the CFO’s views on the first year of the president’s second term are lukewarm at best. The quarterly survey solicits the views of a group of financial executives on CNBC’s CFO Council. The Q4 survey included 22 CFOs and was conducted between December 1 and December 1. 8.

72 percent of CFOs responding to the survey rated the president’s performance this year as fair (10) or poor (6). Only two CFOs described it as “excellent,” and four other CFOs described Trump’s performance as “good.”

The problems that were expected to drag the president down did just that; 14 CFOs described immigration policy as “weak” because it was specifically related to the conditions their business needed to succeed, and 20 CFOs described Trump’s trade policy in similar terms. Latest polling on Trump’s immigration policy is mixed. New York Times poll The data show that the president’s performance above his overall approval level remains a problem, but latest Gallup data shows a shift. Seven CFOs said immigration policy was excellent (2) or good (5), especially at creating the business conditions they need to succeed, but more (9) called it “poor.”

Trump’s Treasury Secretary Scott Bessent is doing better than the president among CFOs; 62% describe his performance as “good” or “excellent” and only one CFO rates Bessent’s work as “poor.”

On the important and looming issue of Trump’s plan to appoint a new Fed chairman to replace Jerome Powell, most CFOs say they do not expect the move to have the positive impact the president envisions. Seventy-seven percent are doubtful that the new president will make the Fed “more effective.”

More than half of CFOs expect inflation to remain above the Fed target in 2027, and while they expect rate cuts, they do not expect an aggressive rate-cutting cycle in 2026. CFOs see one to two cuts at most by the middle of next year, excluding this week’s December FOMC meeting where a rate cut is expected. This is suitable for current market expectations He has steered clear of calls for further cuts from Trump and recent calls by Stephen Miran, a voting member of the Federal Reserve Board and the FOMC, to make major cuts. National Economic Council Director Kevin Hassett, who is seen as a candidate for the Fed’s top job, recently called for a 25 basis point rate cut this week.