As an investor you have many decisions to make on the risk reward spectrum and one of the points of the interest is what will the policy of the Federal Reserve be? Similar to many organizations who leads the organization plays a role, otherwise why would shareholders give large payments to senior management? The Federal Reserve among other duties sets the interest rates. If you are a borrower you like them low, if you are an investor you what a balance to fight inflation, which means if anyone uses credit, they have an opinion about the federal reserve.
In an article by Christopher Rugaber of the Associated Press, the US Senate in a vote 80 -19 to confirm Mr. Powell for another 4 years. The vote was similar when former President Trump nominated Mr. Powell with a 84 – 13 vote.
Linking to dividend paying stocks, when you are an investor, one of the expectations is the government does little or no harm to the stocks you invest in. If you are very successful, the government may want some of the spoils, but only if you are very successful. The confirmation of the Federal Reserve Chair means similar policies will be followed and they seem to work last time, which is a good indication for the future.
There are more questions than answers, till the next time – to raising questions.