The stock market is already in a state of turmoil with the news of the resignation of top economic adviser Gary Cohn. In addition, it seems as though the elections will have further consequences on the financial markets.
Stock prices moved higher with the proposed plans of tax cuts and deregulation by President Trump. The president is also, however, causing significant concern with his statement on delivering two of his plans.
Trump administration failing to fulfill responsibilities
One of the first things that pose as a threat is an administration that seems to be ridden with scandals, not to mention poorly managed. The alleged involvement of special counsel Robert Mueller in the presidential elections of 2016 and the associated investigation already poses an existential threat to the administration. In addition, its day-to-day operations are being affected by smaller issues.
In a series of events, the first national security advisor was fired and pleaded guilty to a felony immediately after. The second advisor is also rumored to be resigning from his post very soon. Again, Rob Porter, staff secretary under Trump, has been forced to quit over allegations of domestic abuse.
Tom Price, Health and Human Services secretary, was found to be using taxpayer-funded private jets for his own ease; the official resigned soon after it was discovered. Ben Carson, the Housing Secretary, was forced to return the $31,000 worth of taxpayer-funded furniture. As if this was not enough, President Trump himself has been using the money from the Republican National Committee to develop office spaces in the Trump Tower.
All of the efforts of the chief of staff to impose order has been futile. As Gary Cohn joins Hope Hicks in resignation, it seems as though the Trump administration has failed to fill in the shoes of top government officials.
The announcement of the tariffs plan by President Trump has caused further uncertainties in the financial markets. Retaliation to these tariffs can be expected soon enough.
Further, Trump has favored a reduction in legal immigration despite protests by Corporate America.
The administration’s fleeting beliefs and short attention span is a cause for concern and President Trump's tendency to reverse an action upon facing resistance has not been comforting either.
The rise and fall of the markets are a clear indication of the success of the Trump presidency. The effect of Cohn's resignation and a number of other aspects will soon show its effects in the stock market.