The White House is in turmoil this afternoon after President Donald Trump abruptly cancelled a scheduled interview with NBC News, following a heated exchange over his unsubstantiated claims of a ‘rigged election’. The move, which sources describe as a ‘fit of pique’, has sent shockwaves through the financial markets, with gilt yields rising sharply as investors weigh the implications of further political instability.The interview was intended to be a routine pre-election chat, but it quickly descended into a war of words when the anchor pressed the President on his repeated allegations of electoral fraud.
Trump, visibly agitated, accused the network of ‘fake news’ and walked off the set, leaving his press secretary to issue a terse statement confirming the cancellation. For the City, this is yet another reminder of the volatility that has come to define the Trump administration. The pound sterling wobbled, and the FTSE 100 shed early gains as traders digested the news.
‘This is a classic case of political risk spilling over into the real economy,’ said a senior analyst at Barings. ‘The President’s unwillingness to accept the legitimacy of electoral outcomes is a direct threat to the rule of law. Markets hate uncertainty, and this is about as uncertain as it gets.
’The cancellation comes at a particularly delicate time for the White House. With the midterms looming and a series of scandals threatening to erode the Republican majority, Trump’s behaviour is becoming an increasingly volatile variable. The ‘rigged election’ narrative, which he has pushed since the 2016 campaign, is now being seen by many as a deliberate attempt to undermine confidence in democratic institutions.
For bond markets, the implications are clear. If the President continues to challenge constitutional norms, the risk premium on US debt will rise. The 10-year Treasury yield has already ticked up 3 basis points in afternoon trading.
Meanwhile, gold prices have edged higher as investors seek safe havens.The incident also raises serious questions about the administration’s credibility. ‘When the President of the United States cancels an interview because he can’t handle tough questions, it sends a signal that he is not fit for office,’ said a former Treasury official.
‘The markets are now pricing in a higher probability of impeachment or a constitutional crisis.’At the time of writing, the White House press office had not responded to requests for comment. But the damage is done.
The cancellation has dominated the evening news cycles, pushing aside any discussion of policy or economic data.For the average investor, the lesson is clear: the Trump era is far from over, and the ride is likely to get even bumpier. As one hedge fund manager put it, ‘If you thought 2020 was wild, buckle up for 2024.
