Today, Donald Trump, the US President, suggested that his impeachment would cause the stock market to crash.
During an interview with Fox & Friends, Trump released a warning against any efforts to remove him from power.
This afternoon, he told Fox News: “If I ever got impeached, I think the market would crash. I think everybody would be very poor.”
Pointing to himself, Trump stated: “Because without this thinking, you would see numbers that you wouldn’t believe in reverse.”
He added: “I got rid of regulations. The tax cut was a tremendous thing.”
He continued: “I don’t know how you can impeach somebody who’s done a great job.”
The US President also implied that cooperating with authorities in exchange for a reduced sentence is “almost ought to be illegal.” He also lashed out against Michael Cohen, his former lawyer.
Earlier this week, a plea deal was accepted by Cohen while implicating Trump in various instances of campaign finance fraud. He stated that “the candidate” – here referring to the US President- was aware of funds that were taken from the 2016 presidential campaign to pay for the silence of many of his former flames.
Minutes before the plea of Cohen, in which he admitted a total of eight counts, including bank and tax fraud, Paul Manafort, the former campaign manager of Trump, was also convicted on eight charges of tax and bank fraud.
The Dow Jones Industrial Average has been greatly unaffected by the ongoing legal drama between Trump and some of his former advisers. Last Wednesday, it dropped only slightly with little change as the markets opened this afternoon.
Moreover, yesterday, the S&P 500 broke past the longest bull market on record, by some measures, at 3,453 days.
A senior market analyst at Oanda, Craig Erlam, told reported that while the immediate reaction of the market to an impeachment could liekly be negative, such a scenario would not be unique to Trump.
Erlam stated: “While Trump may wish us to believe this is due to investors’ confidence in him and the disastrous consequences for the economy of an impeachment, I actually believe this would happen irrespective of who the President is due to the sheer uncertainty such political instability would cause.”
He added: “The market may have rallied strongly since his election but this has a lot to do with the tax cuts that were implemented late last year – which is evident in the first two quarters earnings reports – and the acceleration in what was already a strong economy. None of this changes in the event of an impeachment in a major way so I don’t believe any turmoil would be lasting.”
He continued: “In fact, the longer-term impact could be positive. One drag on the markets right now is the threat of a trade war between the US and many other countries, something that could be avoided in the event of his impeachment.”