(Bloomberg) -- In the wake of President Donald Trump’s firing ofFBI Director James Comey, Wall Street is weighing whether thepolitical fallout will kill any momentum the White House had forits economic agenda.


The abrupt decision has investors raising questions about whether thepresident’s pro-growth, tax-cutting reforms will stall as the focusshifts to why Comey was dismissed amid probes into possible Russianties to Trump’s campaign.


Here’s a roundup of what different banks are saying:

Compass Point Research & Trading LLC

Policy analyst Isaac Boltansky told Bloomberg in an email thatwhile this won’t stop Trump’s agenda, it’s likely to slow it.


“This as a standalone decision is unlikely to sink thepresident’s agenda, but it surely slows it as this now becomes thefocus on Capitol Hill. Congressional Republicans still want taxreform and they will work toward that goal, but this decisiondistracts from legislating and further muddies the agenda. Thereare legal implications that will take time to fully contour, butfrom a purely political perspective I think CongressionalRepublicans have to be befuddled that the White House has refocusedattention on this issue right after they finally secured somemodicum of momentum in the wake of AHCA passing.”

Cowen & Co.

Chris Krueger, a senior policy analyst, says that “everythingjust got more challenging on Capitol Hill.”


“Hard to see any political and policy upside in firing Comey andthe political and policy downside is limit-down...given the policychop in fourth quarter, the ‘soft’ health care deadline of lateJuly is even more critical to meet, though the Comey dismissal isgoing to consume most of the oxygen in Washington for foreseeablefuture and makes that deadline all the more challenging. Anymomentum from the House health care passage last week just went upin smoke.”

Equity Group Investments Inc.

Billionaire investor Sam Zell said in a Bloomberg Televisioninterview that he wondered why Trump took so long to act.


“I think that if you stepped out of the 24-hour news cycle worldI’m not sure he’s been put off the rails, I’m not sure this getshim off of his agenda. Mr. Comey voluntarily or otherwise gothimself involved in a whole bunch of stuff. So he was a woundedanimal to begin with, so the only question I’d ask is what tookTrump so long?”


Height Securities LLC

Analyst Peter Cohn said this would unlikely lead to any furtherproblems for the agenda.


“President Trump’s Nixonian move to abruptly fire FBI DirectorJames Comey last night was yet more evidence of thiscommander-in-chief’s volatility and unpredictability. Whileunnerving for world leaders as well as investors, at the end of theday the firing is unlikely to lead to previously unforeseenproblems in enacting health care and tax reform, which are alreadypurely partisan exercises. And no sane Democrat is going to opposemore pothole-filling infrastructure spending in theirstates/districts, particularly as we move closer to the 2018midterm elections.”

Credit Suisse Group AG

Analyst Honglin Jiang agreed there are a lot of questions aboutthe move.


“The move raised questions about Trump’s motivations, as the FBIis currently investigating allegations of Russian involvement inthe 2016 presidential elections. From a markets and FX perspective,the firing could distract and impact the ability of theadministration to pass its legislative agenda. With meaningfulmeasures on tax reform still priced in, those hopes could facedisappointment.”

FTN Financial Capital Markets

Strategist Jim Vogel said the surprise move could actually lookworse for those overseas.


“Sacking FBI Director Comey took the U.S. by surprise yesterdayafternoon, and optics might be worse for overseas investors. Buyingin U.S. Treasuries followed immediately after the London open toerase Tuesday’s sell-off. Equity futures are not shaken or stirredby the news, however, leaving large domestic accounts to sortthrough the fallout. Both stocks and credit spreads are susceptibleto profit taking.”

BMO Capital Markets Corp.

Ian Lyngen, head of U.S. rates strategy, said the Treasurymarket saw an immediate impact.


“Dusting off The Donald’s patent-pending ‘You’re Fired!’proclamation, the world’s premier federal law enforcement agencywas reminded of the reach of the executive branch. The Treasurymarket benefited from the political uncertainty triggered byTrump’s abrupt firing of FBI chief James Comey. The price actionoccurred on elevated volumes with activity at 155 percent of therecent norms overnight as the 5-year sector led the rally.”


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