#TRUMP #power #politics

The latest Supreme Court decision in the case of Trump V. Wilcox increases market attention to the growing consequences of the expansion of executive power in the United States, research firm Jefferies believes that investors should start considering this in prices.

Strategist Aniket Shah noted that a broader shift to the "Theory of Unitary Executive Power" — a legal doctrine adopted by the Trump administration — could significantly change U.S. governance and introduce higher political risks to financial markets.

This theory claims that the president has sole control over the executive branch of government, including the right to dismiss the heads of independent agencies and overturn Congressional spending decisions.

"We believe that the expansion of presidential power has a negative impact on risky assets and will further undermine the concept of American exceptionalism in the markets," Shah wrote in a note sent to clients on Thursday afternoon.

The Supreme Court's decision to suspend lower court rulings that protected Biden-appointed officials at the National Labor Relations Board and the Merit System Defense Council is seen by Jeffrey as a potential turning point.

Although this is not a final decision, the Court's actions allow the Trump administration to continue with the dismissals and signal broader judicial recognition of the president's control over federal agencies.

Jeffrey argues that if this interpretation gains further legal recognition, it could allow future President Trump to impose tariffs more freely, deregulate sectors without the usual administrative checks, and replace agency heads traditionally shielded from political pressure. Sooner or later, it will come to the Fed. Trump will start firing people he doesn't like. Reduce civil servants, etc .