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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump endorses dramatic shift to the US economy | |
By Matt Egan, CNN | |
Updated: | |
10:44 AM EDT, Mon September 15, 2025 | |
Source: CNN | |
In his latest bid to reshape the American economy, President Donald | |
Trump has endorsed ending the decades-long practice of public companies | |
sharing their financial results once each quarter. | |
Such a move would represent a dramatic shift aimed at combating | |
short-term thinking inside C-Suites obsessed with pleasing investors | |
but would also mean far less timely insights into the business world | |
and the real economy. | |
In a Truth Social this morning, Trump said companies “should no | |
longer be forced to ‘Report’ on a quarterly basis” and should | |
instead report results once every six months. | |
“This will save money, and allow managers to focus on properly | |
running their companies,” Trump said. “Did you ever hear the | |
statement that, ‘China has a 50 to 100 year view on management of a | |
company, whereas we run our companies on a quarterly basis???’ Not | |
good!!!!” | |
The criticism of short-term thinking echoes arguments including | |
JPMorgan Chase CEO Jamie Dimon and legendary investor Warren Buffett. | |
Hillary Clinton, Trump’s 2016 presidential election opponent, she was | |
“deeply distressed about quarterly capitalism.” | |
The concern is that Corporate America is often far too focused on | |
pleasing the notoriously fickle stock market and not paying enough | |
attention to longer-term challenges and opportunities. | |
Moreover, some argue that the regulatory burdens of quarterly reporting | |
have contributed significantly to the in the United States. | |
Trump noted that moving away from quarterly reporting would be | |
“subject to SEC Approval,” an allusion to the regulatory sign-off | |
that would be required by regulators. | |
The Securities and Exchange Commission may have a chance to weigh in on | |
such a change soon enough. | |
The Long-Term Stock Exchange, an exchange backed by major investors | |
including Andreessen Horowitz and Founders Fund, plans to soon petition | |
the SEC to eliminate the quarterly earnings report requirement and | |
instead allow companies to report results once every six months. | |
“We hear a lot about how it’s overly burdensome to be a public | |
company,” the exchange’s CEO Bill Harts told The Wall Street | |
Journal, which first reported news of the planned petition. “This is | |
an idea whose time has come.” | |
In the 2010s, regulators in both the European Union and the United | |
Kingdom stopped requiring companies to report quarterly results, moving | |
to six-month reporting periods instead. | |
In 2018, Trump to study moving to a six-month reporting system to | |
“allow greater flexibility & save money.” | |
“We believe the switch to semi-annual from quarterly reporting has | |
moved from improbable to probable though not guaranteed,” Jaret | |
Seiberg, managing director at TD Cowen Washington Research Group, wrote | |
in a note to clients on Monday. | |
Seiberg noted that there is an industry push to get rid of quarterly | |
reporting and Paul Atkins, the Trump-nominated chair of the SEC, favors | |
cutting red tape. | |
“This appears to be an easy policy win for SEC Chair Paul Atkins to | |
deliver to the President,” Seiberg wrote. | |
It would likely take staffers at the SEC at least six months to craft a | |
proposed rule and collect data to support it, Seiberg said. | |
Yet shareholders, economists, policymakers and others have come to rely | |
on these timely updates from major companies. | |
Quarterly reports from airlines give powerful insights into shifts in | |
travel demand, big bank results give early warnings on loan losses and | |
Big Tech reports currently give timely updates on the state of the | |
artificial intelligence boom. | |
Moving to a six-month reporting period could delay those insights and | |
exaggerate stock moves during shifts in the economy and various | |
industries. | |
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