Amid an impeachment inquiry into President Trump, uncertainty remains over the stock market’s response to the Democrats' campaign against him.
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Similar situations in years past don’t offer much in the way of market predictions. During the Nixon impeachment proceedings between 1973 and 1974, the S&P 500 dropped 13 percent. But for Bill Clinton’s in 1998, it climbed 20 percent.
At 81-years-old, U.S. Commerce Secretary Wilbur Ross has lived through both the Nixon and Clinton’s impeachment processes. Ross told Fox News on Sunday that despite Trump delivering a strong economy, the market has still taken a hit amidst news of the Democrats’ impeachment inquiry.
“You notice the market has not reacted well to this impeachment business,” Ross said. “The market knows this president has delivered a very, very strong economy. All the recent indicators right through August have been very good: unemployment, the PMI Index, consumer spending, consumer income … Everything has been going in the right direction.”
Since House Speaker Nancy Pelosi announced the impeachment inquiry last week, those economic indicators have gone in the wrong direction, Ross contends, a move which he believes is an attempt to put Democrats in a position to win in November as well as to spoil Trump’s chances at reelection in 2020.
“Democrats are desperate to try to derail the economy, because they know if they don’t, they’re toast next November.”
Ross even discussed the potential fallout should the president indeed be impeached, with Vice President Mike Pence as the next-in-line to replace Trump, with Pelosi right behind him in the presidential line of succession.
“As I understand the line of succession, it goes from after vice president to speaker of the House,” Ross said. “That’s an interesting thought.”