While economists cite an inverted yield curve as a precursor to a recession, U.S. President Donald Trump made his own economic prognostications, telling Fox News during an interview that his impeachment would result in a stock market crash. Furthermore, it would cause individuals to lose all their money.
“If I ever got impeached, I think the market would crash. I think everybody would be very poor,” President Trump said.
“Because without this thinking, you would see numbers that you wouldn’t believe in reverse,” Trump added. “I got rid of regulations. The tax cut was a tremendous thing.”
The president’s comments stem from the his longtime personal attorney Michael Cohen,pleading guilty on Tuesday to two felony campaign finance violations, including excessive campaign contributions and causing an unlawful corporate contribution. Under oath, Cohen admitted to these violations at the direction of the president.
Related: Interest Rate Policy After September Hike Uncertain
When news broke of Cohen’s guilty plea on Tuesday, the markets weren’t in a state of dismay as the Dow Jones Industrial Average climbed over 60 points and on Wednesday, it fell over 80 points, but not until the S&P 500 reached a new bull market record. In today’s market session, the major indexes were little changed as the Dow was down just over 20 points as of 11:00 a.m. ET.
How the president’s legal issues affect the markets moving forward will be closely watched as well as if impeachment charges come into fruition.
“If you look at President Obama, he had a massive campaign violation, but he had a different attorney general and they viewed it a lot differently,” Trump said. “So Obama had it, other people have it. Almost everybody that runs for office has campaign violations.”
For more investment strategies, visit ETFTrends.com.