Trump's economic agenda was already in trouble, especially considering that the Republican's internal disagreements were threatening the proposed "Trumpcare." Then, there are the disgruntled investors who are still waiting on the promised tax cuts.
Adding fuel to the fire, the recent and abrupt firing of James Comey, the FBI Director, is only making the situation worse for Trump. Some would even say that it is the end of his presidency.
The split between the Republicans is only widening, and some are very suspicious about the timing of James Comey’s dismissal.
According to White House officials, the decision to fire Comey came after the Department of Justice's assessment of the recently dismissed FBI Director.
If there is one thing that has been clear in these recent months, it's that the nation's capital can only handle one issue one at a time. A prime example of this was how Washington met the proposed healthcare bill. Now the raging political fire surrounding Comey's firing is reaching the very core of capitol hill. At this current time, it's easy to conclude that nothing is ever going to be accomplished in the near future as the Republican party envisions it.
Wall Street is responding differently to Comey's firing. Stocks experienced a sharp rise despite the fact that the U.S. has shown weakening economic growth. This is also amidst steep challenges for the President's proposal of corporate tax cuts and deregulation. It seems that there is no amount of bad political news that will deter the market's stability. In fact, the volatility index, or what investor's like to call as the market's fear gauge, reached its lowest since 1993.
For example, Apple surged past the $800 billion market cap, making it the first US company to exceed such a mark. One reason for the surge was the proposed deregulation and corporate tax cuts of Trump as they greatly benefited Apple.
On the other hand, some analysts and investors are claiming that the market is simply in the phase of what is known as the "calm before the storm." Investors and analysts are already thinking that the market is running out of momentum.
But in the end, nobody really knows where the market is heading. Markets are known to stay irrational compared to the average household, which made nearly zero economic progress in recent decades. So, when will the next crash be? No one knows. However, if things remain unchanged, then there's an increasing chance that it may happen within this fiscal year.
Henry Croft and Mike van Dulken, Accendo Markets analysts, was quoted as saying that Trump firing James Comey “Is like throwing a wrench into a moving locomotive that's already running on momentum and fumes.” It's possible that Trump's action may negatively impact the stimulus of the policy's approval, which may hinder the markets.
To put it nicely, as the Russian investigation sucked all the air in the nation's capital, Trump’s entire political and economic agenda may give everyone the impression that it's still on the move. But a "dead on arrival" scenario could be likely to happen.