In JPM’s initial market comment this morning, reacting to the news of Comey firing, the bank said that “as far as the market is concerned, Comey’s dismissal saps Trump’s political capital and weakens relations w/Congress at the time when he is trying to move an ambitious pro-growth agenda through the Senate and House.” What JPM was referring to was the potential of substantial incremental delays now facing Trump’s parallel reforms, healthcare on one hand and tax reform on the other.
Now, as Axios points out, this concern is starting to materialize when the Senate HELP Committee called off a health care markup this morning after Senate Minority Leader Chuck Schumer asked all Democrats to be in the Senate chamber at 9:30 a.m. to protest President Trump’s firing of FBI Director James Comey.
The committee said it will reschedule the meeting, where senators were set to approve a bill to reauthorize the user fees that help fund the Food and Drug Administration.
This is likely the first of many procedural delays, which will almost certainly delay the Senate’s process on Obamacare Repeal by weeks if not months.
Meanwhile, in a new report released overnight, Goldman’s D. C. analyst Alec Phillips remained modestly more sanguine, and laid out his latest timeline of Fiscal Signposts on the Way to Tax Reform, stating that while the pending health legislation is likely to delay progress on other aspects of fiscal policy, we nevertheless expect several developments over the coming weeks and months.
Here are the highlights from the note:
This post was published at Zero Hedge on May 10, 2017.