The news came via a tweet this morning from the president, who said he received insight from "some of the world's top business leaders", one of whom suggested that if the SEC were to "stop quarterly reporting [and] go to a six month system", it would boost US business growth and employment.
The SEC's chairman said the agency already is studying the issue. That has been required since the Securities Exchange Act of 1934, which was put in place to give more confidence and transparency to investors in the wake of the 1929 stock market crash.
Writing on Twitter, Trump said that he had discussions with business leaders and that one leader had asked him to move toward a system of reporting every six months. "It's a lot of work to report every three months", said Charles M. Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware.
There are also tremendous expenses associated with preparing quarterly and annual reports. In addition to financial information about earnings and cash flow, these reports also include qualitative information in the form of earnings guidance, which are 'forward-looking' statements from management about what the company plans to do in the future.
Even former President Barack Obama spoke out against the short-term nature of the reporting requirements in 2015.
Indeed, corporate stocks are known to see sharp gains and falls on the heels of quarterly earnings releases that beat or miss forecasts - and market watchers have often said investors' quick reactions are unwarranted or ill-advised.
Russia, Turkey hold talks on implementing deals on Syria de-escalation zones - Lavrov
President Donald Trump on Friday ramped up his attack on Turkey by doubling USA tariffs on Turkish aluminium and steel imports.
"I'm encouraged to hear people from both sides of the aisle talking about the need to promote corporate behaviour that's more focused on the long-term, though the precise policies for getting there need to be thoughtfully examined and debated", Fink said in a statement yesterday.
"Many market participants.have been discussing how to better orient corporations to have a more long-term view". Others said that the prospect of fewer financial reports could exacerbate price swings around earnings or fuel insider trading.
The chief executive officer who urged Trump to look into six-month reporting is PepsiCo Inc.'s Indra Nooyi, the president told reporters in Washington after sending his tweet.
The president has run privately-held companies that didn't have to report results at all during most of his time in business.
Reuters reported that reducing the reporting requirements to bi-annually instead of quarterly would end up moving the United States rules closer to the rules that the European Union and the United Kingdom have adopted.
"My comments were made in that broader context, and included a suggestion to explore the harmonization of the European system and the USA system of financial reporting". I find it very rich that he's proposing this with some veil that it's going to help companies think long-term.