Why the markets are falling after the healthcare meltdown
Last night, the Senate GOP’s effort to repeal and replace Obamacare died on the vine after two more Republican Senators announced they wouldn’t be supporting it. This morning, the market was down.
The market has been way up in the months since President Donald Trump took office, anticipating the pro-growth policies that generally come with Republican governance. This defeat, though, brings into doubt the notion that the Trump administration, along with the GOP-controlled Congress, would be able to get its act together and actually sign those policies into law.
It wasn’t just the stock markets. The dollar was also down, buying only €0.87 Tuesday morning, the lowest the currency has hit in nearly two years.
While Senate Majority Leader Mitch McConnell changed his tune late Monday night and promised a vote on repealing Obamacare without a replacement, Trump took to Twitter and said that the GOP should just let Obamacare fail.
This uncertainty — and lack of a disciplined message from the party in power — could mean more tough times are coming for the market.