AFP, Washington :
The repeated national security scandals rocking the Trump White House could derail the president’s economic agenda and dampen the wave of investor enthusiasm that greeted his election, analysts say.
For the moment, the tremors are still slight and most economic data, job creation in particular, are healthy.
But some signs suggest the firestorm sparked by President Donald Trump’s sudden firing of Federal Bureau of Investigation Director James Comey, or the cloak-and-dagger investigation into Russian interference in the 2016 elections, have left investors rattled.
On Wednesday-amid news reports suggesting Trump attempted to pressure Comey into dropping the Russia investigation-Wall Street had its worst day since before November’s elections. By Friday, stocks had regained some lost territory, however.
Meanwhile, the Philadelphia Federal Reserve Bank on Thursday also reported a dip in optimism among manufacturers in May, which followed a decline in consumer confidence in April.
“Investors are certainly becoming more disenchanted with the idea that there will be this Trump rally, not only on the stock market but also in the economy,” said Ken Goldstein of the Conference Board, which publishes the closely-watched monthly consumer sentiment survey.
Driven by the post-election euphoria, Wall Street’s three major stock indices are up between 12 and 16 percent, with investors buoyed by hopes Trump will slash corporate taxes and regulations to boost growth.
“Can this trend be reversed because of the turmoil in Washington? Yes, it can but we just don’t know yet,” said Mickey Levy of Berenberg Capital Markets.
None of Trump’s grand economic plans have been abandoned yet.
The repeated national security scandals rocking the Trump White House could derail the president’s economic agenda and dampen the wave of investor enthusiasm that greeted his election, analysts say.
For the moment, the tremors are still slight and most economic data, job creation in particular, are healthy.
But some signs suggest the firestorm sparked by President Donald Trump’s sudden firing of Federal Bureau of Investigation Director James Comey, or the cloak-and-dagger investigation into Russian interference in the 2016 elections, have left investors rattled.
On Wednesday-amid news reports suggesting Trump attempted to pressure Comey into dropping the Russia investigation-Wall Street had its worst day since before November’s elections. By Friday, stocks had regained some lost territory, however.
Meanwhile, the Philadelphia Federal Reserve Bank on Thursday also reported a dip in optimism among manufacturers in May, which followed a decline in consumer confidence in April.
“Investors are certainly becoming more disenchanted with the idea that there will be this Trump rally, not only on the stock market but also in the economy,” said Ken Goldstein of the Conference Board, which publishes the closely-watched monthly consumer sentiment survey.
Driven by the post-election euphoria, Wall Street’s three major stock indices are up between 12 and 16 percent, with investors buoyed by hopes Trump will slash corporate taxes and regulations to boost growth.
“Can this trend be reversed because of the turmoil in Washington? Yes, it can but we just don’t know yet,” said Mickey Levy of Berenberg Capital Markets.
None of Trump’s grand economic plans have been abandoned yet.
