The high cost of distrust

The fruit of trust is unity. A lack of trust often results in discord or worse. Trust seems to be at a low point across much of the country as we enter 2026..An example is our economy, which is based on a fiat currency. A lot of work over the decades has gone into establishing institutions designed to build trust, like the Federal Reserve. Acting independently, it sets monetary policy, including interest rates. The economy heats and cools with the increases and decreases in rates, largely driven by the Fed, magnified by the markets. There is a special dance that takes place between elected officials, who affect the economy with their fiscal policy, and the Fed, which affects the economy with its monetary policy.The threat of legal action against the Fed by the executive branch impinges the public trust in an essential national system, our economy. The executive branch should leave it alone. The case of Chair Powell is particularly baffling given his chairmanship concludes in May. Fed independence, at the core of public trust, is a valuable thing and should be respected, not taken for granted or dismissed.Of course, if you are living in Minneapolis, the most disruptive example of a lack of trust is the so-called “surge” by ICE. You have seen videos of the violent interactions with area residents, resulting in large-scale and frequent protests. I don’t think the average person rejects the need for sound immigration policies and appropriate enforcement. It is the inhumane treatment of people, regardless of where they come from, that is so upsetting. The results in only a few weeks have been devastating and even deadly.This is a business issue, an issue for bankers and all else who care about our communities. Customer traffic at stores and restaurants in the area is down. Some employees are afraid to come to work, even if they are documented U.S. citizens. I can’t imagine any bright-eyed entrepreneurs are planning to set up shop or open for business in the Twin Cities right now, especially given that the last round of protests and unrest is still pretty fresh in our minds.In the immediate term, we need to find humane tactics for enforcing the law, while in the long term, we need immigration policies that reflect the human spirit at the core of a country that has touted freedom for nearly 250 years.