According to a Bank of America survey, small business owners are optimistic their year-end revenue will surpass 2016 as confidence in the economy has surged on expectation that economy will improve in the year ahead.
Reuters reported that the recent decline of U.S. bank stocks has been particularly unkind to regional banks, and that’s not likely to change soon as hopes dim for higher long-term interest rates and timely policy relief from Washington.
According to the annual Business Pulse Survey by SunTrust Banks, nearly two-thirds of business leaders expect the global and U.S. economy to improve through 2017. Leaders have high expectations for healthcare and tax reform to spur growth.
In light of strong job growth and increased economic activity, the Federal Open Market Committee voted to raise the target range for federal funds rate a quarter of a percentage point with three more increases planned for 2017.
The FOMC decided at its most recent meeting to maintain the target range for the fed funds rate at 1/4 to 1/2%. The committee noted household spending has been growing strongly, but business fixed investment remained soft.