US Policy Uncertainty Stalls Investment for 90% of North American Firms as FX Risk Hits the Boardroom

Quick Summary

Recent data from MillTech reveals that US policy uncertainty has caused 90% of North American firms to stall investment. With FX risk management now a boardroom priority, 82% of corporates are hedging currency exposure to combat volatility from Federal Reserve and Bank of Canada rate shifts.

How Does US Policy Uncertainty Impact Corporate Investment?

The US policy uncertainty landscape has forced a staggering 90% of North American corporates to delay critical investment decisions over the last year. According to MillTech’s 2026 report, 39% of these firms report significant investment delays, directly linked to fluctuating regulatory and trade environments. Business leaders are prioritizing capital preservation over expansion as they navigate a complex web of Federal Reserve rate policies and shifting US trade tariffs.

• 90% of firms delayed investments due to policy shifts.
• 38% cite Fed/Bank of Canada policy as the top FX influence.
• 33% identify US tariffs as a primary external risk factor.

Why Is FX Risk Management Becoming a Boardroom Priority?

Volatility in the US dollar has transformed FX risk management from a back-office function into a core strategic pillar. Approximately 81% of firms have adjusted sourcing strategies to mitigate the impact of currency swings on their bottom line. While hedging costs increased by an average of 52% this year, the necessity of protecting margins means that 72% of current non-hedgers are now actively considering implementing hedging programs to stabilize their financial outlook.

• 82% of corporates currently hedge forecastable currency risk.
• 48% of firms plan to increase their hedge lengths.
• 72% of firms report a positive impact on returns despite volatility.

What Role Do Automation and AI Play in Modern Treasury?

To combat the FX risk management bottleneck, 55% of firms have migrated to online user interfaces for transactions. However, real-time data transparency remains the top operational challenge for 28% of treasurers. Firms are increasingly turning to automated price discovery and AI-driven risk identification to streamline workflows. Despite the enthusiasm, 19% of respondents cite model risk governance as a primary barrier to scaling AI solutions within their treasury departments.

FF NEWS TAKE:

This report highlights a critical inflection point where US policy uncertainty is no longer just a headline - it is a direct drag on GDP-contributing investment. MillTech’s data proves that FX risk management is the new frontline for corporate stability. While the surge in email-based trading is a surprising step backward for digitization, the pivot toward AI-driven automation suggests that the industry is preparing for a permanent era of high volatility. This moves the needle by proving that treasury tech is now a survival requirement.