The most pressing news in US politics this week is President Trump’s firing of FBI director James Comey. The justification Trump provided for this action pointed back to Comey’s handling of the investigation into Hillary Clinton’s use of a private email server during her time in office. However, the firing has raised controversy from Democrats and Republicans alike as it has taken place during an ongoing investigation into Trump’s suspected ties with the Russian government.
The effects of this firing have been wide ranging, affecting many different nations across the globe.
Surveying global effects
Not all nations were hurt or benefited similarly or proportionally by the recent news. While the US economy is losing ground in comparison to the euro, the yen seems to be doing even worse, falling at a faster rate than the USD. Here is a quick survey of some initial results:
- As of May 10th, the ICE dollar index was at 99.44, compared to 99.39 on Tuesday.
- Euro and British pound crosses constituted the most major losses to the US dollar, as the pound gained ground, rising from $1.2977 to $1.2935 and the euro picked up from $1.0889 from $1.0872.
- The dollar gained lost ground against the ten, showing a small increase in the two days following.
Speculating on long-term effects
Many have compared the recent political controversy to the Watergate scandal of 1974. Whether this is an accurate characterization or not, we may be able to find clues to the potential lasting effects of the current circumstances in the economic aftermath of the Nixon resignation.
Like most political scandals in this country, Watergate has a profoundly negative effect on the US economy, continuing to fall lower and lower as the news continued to grow in importance. However, this trend quickly reversed itself immediately after Nixon’s resignation, in a sharp upswing that would continue for the next year. Whether the current issues surrounding James Comey’s firing will have a similar impact rests largely on the continuing importance of the news, as well as the results of the investigation into Russian ties on the part of Trump.
In the next days
The true effects of the firing are just beginning to be uncovered as the ongoing investigation into illicit presidential ties with Russia hastens. Financial speculators remark that that the ultimate impact of the Comey firing is simply to exaggerate the effects of a Trump presidency of global currency exchange. Other factors include the president’s pending nomination of a successor to Comey, as well as the continuing reaction of the media to the events.