Every President has the ability to appoint people to their administration but how far and how much should they be able to do? This time around President Trump has an agenda, although one might be concerned with the next President or the next one, what will their agenda be and how much power will rest in the office. Most of us have grown up with the idea that Presidential authority needs to be checked in balance and out of a 8-year two term President, the last 2 are essentially are on hold or lame duck till the next President. President Trump is different this time. This time, President Trump wants to challenge the more accepted norms and what agency have more independence.

In an article by Christopher Rugaber of the Associated Press, one of the more independent agency in Washington is the Federal Reserve Bank. The agency which among other things determines interest rates, regulates banks, ensures enough cash in cash machines and the list goes on. The financial world needs an independence from politics because politicians in general want lower interest rates. Is that good for the economy? does it battle inflation?

President Trump has decided after one of the Directors of the Federal Reserve resigned from their post, to go after Lisa Cook. In the law courts, the Department of Justice lawyer said President’s Trump tweets is a notice and President Trump has the authority to fire an Governor of the Federal Reserve. Neither mind the Federal Reserve was set up to be independent, the Directors are staggered to ensure no President can appoint a majority, never mind past law cases over 112 years support the independence. President Trump the prime rate to be 1.3% rather than the 4.3% it is now. The Supreme Court has signaled the President cannot fire Fed officials over policy differences, but can do so “for cause”, typically meaning misconduct or neglect of duty. Ms. Cook has not been charged with any crime.

Ms. Cook is the first Black woman to serve as governor. She is a Marshall Scholar and received degrees from Oxford University and Spelman College. She was a professor at Michigan State University and Havard University’s Kennedy School of Government.

As the case continues, the Supreme Court said Ms. Cook job is safe until a later court date.

The Federal Reserve has to deal with President Trump’s policies on tariffs which are inflationary or similar to a tax cut on the average consumer because the importer pays the tariff and eventually, they are passed on the consumer of the product. It would take some time in the supply system not to import the same item into the US and if that price was lower than the imported price. If the imported price is 25% lower, add the tariff and the imported price is add 15%, meaning the imported price is still lower why turn to domestic manufacturing? Would will likely happen and is starting across the country is prices are increasing to reflect past margins.

Linking to dividend paying stocks, as an investor you depend on various Boards and agencies for independence in the expectation of a level playing field. If the playing field is tilted toward political influence would stay in the game? What would your expectations be? Would you spend more time with political representatives to give you inside information? Would you trust the system? Most of us are smaller players in the game, but we believe the tilt on the game allows everyone to compete. If you go back to a time before deregulation of trading prices, it was hard to make money when the commission prices were so high. People bought stock and held for a long time because the brokers were making the easy money for little work. It was good that commission prices have fallen.

There are more questions than answers, till the next time – to raising questions.