Director of Client Relationships Responsible for the management & development of the easyMarkets client base as well the development of our IB partner program.

Donald Trump ’s decision to fire FBI Director James Comey may prove to be his biggest blunders yet. A prominent Republican senator by the name of Chuck Grassley recently outlined plans to meet with Democratic counterparts to discuss whether Comey’s dismissal warrants an obstruction of justice investigation.

Trump “not under investigation”?  

Up until now, the president has vindicated himself on the fact that he was under no investigation at all. In fact, the White House has made that part abundantly clear.

“I greatly appreciate you informing me, on three separate occasions, that I am not under investigation,” Trump wrote in his letter relieving Comey of his duties.[1]

Grassley, who is a top member of the Senate Judiciary Committee, insists that a decision about an investigation hasn’t been made one way or another. That could soon change as Republicans and Democrats unite over Trump’s improprieties in axing Comey during an investigation of collusion between White House staff and the Russians.

What Comey did to Trump

Just prior to his dismissal, James Comey wrote a memo where he alleges President Trump tried to convince him of dropping an investigation into former National Security Advisor Michael Flynn. Flynn was forced to resign back in February on revelations he had misled Vice President Michael Pence about his interaction with Russian officials.[2]

Not about Trump set the market off

The mere fact that the memo was written sent the global financial markets into a tailspin, triggering the biggest bout of volatility this year.[3] A full-blown investigation into the president could lead to a similar knee-jerk response from investors, who are doubling down on Trump’s plan to boost the US economy.

Investors are so bullish on Trump that they have bought up U.S. stocks to record levels. Some analysts warn that the markets are dangerously overbought, while others say the market is where it should be given Trump’s economic agenda.

Follow up with our Trump Watch series as things could get far more complicated in the coming weeks as lawmakers discuss whether an investigation is warranted. Investors have so far not been affected by the latest saber-rattling, opting instead to focus on monetary policy and economic data.

The president has faced significant roadblocks in implementing his America First strategy. The administration tabled its first Budget last month – one that analysts say stands little chance of making it through the Senate in its current form.

[1] Natasha Bertrand (15 June 2017). “Trump proved James Comey right on a major part of their dispute.” Business Insider.

[2] Clark Mindock (14 June 2017). “Donald Trump could face obstruction of justice investigation over Comey firing, top Republican suggests.” The Nerve 2016 trailer

[3] Sam Bourgi (17 May 2017). “S&P 500 Futures Drop by Most in Eight Months as Volatility Returns.” Economic Calendar.

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