President Donald Trump warned on Thursday morning, Sept. 26, that stock markets will crash should he be impeached, following the formal impeachment inquiry Tuesday filed by House Democrats.
The stock market saw a decrease after House Speaker Nancy Pelosi’s (D-Calif.) announcement of an impeachment inquiry, with the Dow Jones Industrial Average losing more than 142 points or around 0.5 percent, while the S&P 500 and the Nasdaq Composite fell by 0.8 percent and 1.46 percent respectively.
“We have created the greatest economy in the history of our country, the greatest economy in the world,” Trump said to reporters Wednesday ahead of the United Nations General Assembly in New York.
“We have the strongest country we’ve ever had, we have the best economy we’ve ever had, we have the best unemployment numbers we’ve ever had, we have the best employment numbers we’ve ever had,” Trump said, also tweeting a segment of the remark.
“If they actually did this the markets would crash,” Trump alerted his followers on Twitter, hours prior to the acting director of national intelligence’s public testimony before Congress.
“Do you think it was luck that got us to the best Stock Market and Economy in our history,” the president tweeter. “It wasn’t!”
Analysts at J.P Morgan said the market isn’t yet freed from the possibility of crashing from the impeachment process, citing factors such as the U.S.-China trade war, Iran relations, and implications for the 2020 presidential and Senate elections, CNBC reports.
The same report noted that the ups and downs of the impeachment inquiry could be reflected in the prices of stocks and other assets that move on trade-related headlines, as Trump’s remarks and actions on the trade front have been very influential so far.
According to a report by The Hill, stocks dipped following the impeachment of former Presidents Bill Clinton and Richard Nixon. However, economists have held that the fall was largely caused by outside factors including runaway inflation and the Asian currency crisis.
Strategas policy analyst Dan Clifton said, “The president’s approval rating has been tied to better news on China trade over the last year and a half,” adding it would improve confidence if Trump were to resolve some trade conflicts with China, according to a report by CNBC.
The U.S. economy has reportedly been affected significantly in recent days by the trade conflict between the U.S. and China, according to The Hill.