Finance

American President 2014 Economic Policy and Regulatory Impact

In 2014, the American president oversaw a U.S. economy recovering from the 2007-2009 recession, with real GDP growth accelerating to 2.4% for the full year according to the Bure...

Mara Ellison
American President 2014 Economic Policy and Regulatory Impact

American President 2014 Fiscal and Monetary Context

In 2014, the American president oversaw a U.S. economy recovering from the 2007-2009 recession, with real GDP growth accelerating to 2.4% for the full year according to the Bureau of Economic Analysis BEA GDP Data. The federal budget deficit narrowed to $483 billion, or 2.8% of GDP, reflecting a combination of spending caps under the Budget Control Act and higher tax receipts CBO Budget Outlook.

The Federal Reserve, chaired by Janet Yellen after her appointment in February 2014, maintained the federal funds rate near zero while tapering asset purchases from $85 billion to $15 billion per month by December FOMC Minutes 2014. The unemployment rate fell from 6.7% in January to 5.6% in December, marking a steady labor market recovery.

Regulatory and Energy Policy Actions

The administration finalized the Clean Power Plan proposal in June 2014, aiming to cut carbon emissions from power plants and signaling a shift toward cleaner energy EPA Clean Power Plan. The Department of Energy also supported a rapid expansion of solar capacity, with U.S. installed solar photovoltaic capacity more than doubling over the preceding four years.

In the financial sector, the Securities and Exchange Commission continued to implement Dodd-Frank rules, including finalizing the Volcker Rule in December 2014 to restrict proprietary trading by banks SEC Volcker Rule. The Consumer Financial Protection Bureau also expanded oversight of consumer financial products and services during the year.

International Trade and Corporate Tax Landscape

The American president in 2014 advanced trade negotiations, including the Trans-Pacific Partnership, which aimed to lower tariffs and standardize regulations among Pacific Rim economies USTR TPP Page. The administration also promoted the Export-Import Bank's financing programs to support U.S. exports, with the bank authorizing roughly $27 billion in new loans and guarantees during the fiscal year.

Corporate tax policy remained a focus, with the administration proposing a one-time tax on overseas earnings and a reduction in the statutory corporate rate from 35% to 28% in the 2015 budget Treasury 2015 Budget. Major companies such as Tesla continued to benefit from federal and state incentives for electric vehicles and clean energy manufacturing, supporting a surge in EV-related investment and supply chain development.

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