On Tuesday, House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. We will have to wait until the morning to see how the global economy accepts that news.  The futures market give us a hint before the Wednesday 9:30 a.m. open.  

 Many Democrats, mostly the progressive left ones, have been pushing to launch a formal impeachment inquiry into President Trump for two-plus years now. Speaker Pelosi has always been apprehensive about beginning an official impeachment inquiry into President Trump. 

President Trump’s admission that he urged the newly elected Ukraine’s President to investigate 2020 presidential candidate  Joe Biden seems to be the tipping point for the Speaker. 

The trade war with China and the President many unusual behaviors are creating real uncertainties for businesses out-of-there.  We wrote on this site how lack of business investments is the main factor hurting the economy. It’s unclear whether or not the news of impeachment inquiry will alleviate some concerns that businesses have.

A formal impeachment inquiry does not mean that President Trump will be out of office.  If the House of Representative impeached the President, The Senate would have to go through its process and determine whether the President is guilty of the charges.

 So, economic uncertainties may prolong for a while.  The bipartisan aspect of the impeachment inquiry is that businesses might have a window into the future, which is good for America’s middle-class. 

Today is a historic day.   Only Four Presidents (Andrew Johnson, Bill Clinton, Richard Nixon, and Donald J Trump) had formal impeachment inquiry opened against them.  The House of Representative impeached Andrew Johnson and Bill Clinton, but they were not removed from office. Richard Nixon resigned during the impeachment inquiry.

Richard Nixon’s impeachment inquiry hurt the stock market, and Bill Clinton’s did not.  Let’s hope that Donald Trump is more Bill Clinton than Richard Nixon.