(Reuters) - Business customers are slowing down their activity due to uncertainty about fiscal policy in Washington, but consumers have shown little reaction so far, Wells Fargo & Co’s (WFC.N) chief financial officer said on Wednesday.
Corporate America is urging the U.S. government to avert a year-end “fiscal cliff” - possible spending cuts and higher taxes in early 2013 that could trigger a recession. About a dozen top U.S. CEOs are scheduled to meet on Wednesday with President Barack Obama to discuss the issue.
“There’s no question that the uncertainty creates some sort of a pall on the overall economic growth and therefore on our business,” Wells CFO Tim Sloan said at an investor conference in New York.
Small and large businesses are concerned about the uncertainty on tax policy, Sloan said. Consumer spending, though, has continued to increase, partly because of improvements in the housing market, he said. (Reporting By Rick Rothacker in Charlotte, N.C.; editing by John Wallace)