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The Trump administration is under a barrage of scrutiny this week after a memo from then-FBI director James Comey surfaced. In that memo, Comey alleges the president attempted to silence an investigation of his former national security advisor, raising the specter that Trump engaged in obstruction of justice – an impeachable offense under U.S. law.[1]

“I hope you can let this go,” Trump told the former FBI director, according to the memo, which was cited by major news outlets on Tuesday.

Trump fires Comey

Comey was fired by Trump more than a week ago, allegedly over the bureau’s mishandling of the Clinton email scandal. Others say the firing was over the FBI’s ongoing investigation into possible collusion between Russia and the Trump administration over the November presidential election.

Trump’s former national security advisor Michael Flynn resigned in February after admitting that he misled Vice President Michael Pence about his interaction with Russian officials.

It has been a catastrophic week for the Trump administration. The memo surfaced one day after the president admitted to sharing intelligence with Russia. In between Comey and Russia, Trump is facing the biggest crisis of his young political career.

Trump moves the market … again

That crisis wasn’t lost on the global financial markets, which declined sharply in the wake of the memo’s revelation. The large-cap S&P 500 Index plunged 1.8% on Wednesday, its biggest decline in eight months. Heavy losses were reported among financials and information technology shares.

The Nasdaq Composite Index also fell 2.6%, the biggest free-fall in nearly one year.

A measure of expected volatility known as the CBOE VIX spiked 46% to reach its highest level in over a month. The VIX is tied to movements on the S&P 500 Index. When it rises, it usually means investors are exiting stocks.[2]

The exodus from stocks was accompanied by a rush to safe havens, with gold prices climbing to multi-week highs.

Will this be the worse to come out of Trump?

 The political chaos surrounding the U.S. president is unlikely to end anytime soon. Trump has already gone on the defensive and attacked the media for treating him unfairly.


“Look at the way I’ve been treated lately, especially by the media,” Trump told the U.S. Coast Guard Academy in Connecticut earlier this week. “No politician in history, and I say this with great surety, has been treated worse or more unfairly.”[3]

[1] Chris Strohm and Steven T. Dennis (May 17, 2017). “Trump Faces Deepest Crisis of Presidency With Comey Memo.” Bloomberg.

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

[3] Chris Strohm and Steven T. Dennis (May 17, 2017). “Trump Faces Deepest Crisis of Presidency With Comey Memo.” Bloomberg.


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