Invoking 25th Amendment now 'would probably not impact policy:' UBS

Yahoo Finance’s Alexis Christoforous and Sibile Marcellus discuss UBS' latest note on market outlook.

Video Transcript

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ALEXIS CHRISTOFOROUS: Welcome back. At least one Wall Street firm is now weighing in on the possibility of President Trump being removed from office before January 20th. Sibile Marcellus has been following this one for us. She joins us now. So, Sibile, I understand this comes from UBS and their chief economist. What is he saying?

SIBILE MARCELLUS: That's right, Alexis. What we're seeing is a growing number of lawmakers and business leaders calling on President Trump's Cabinet to invoke the 25th Amendment to immediately remove him from office. Now, Senate Democratic Leader Chuck Schumer has said and blamed President Trump, saying that he incited the violence that had protesters storming the Capitol building and disrupting the election certification process.

AOC even tweeted today that Democratic lawmakers have already drafted articles of impeachment. Here's her tweet. And she says, quote, "Articles of impeachment already drafted, ready for introduction. They were prepared and finalized by Congresswoman Ilhan Omar, while she was extracted in a secure location, and members are signing on."

So the big question is, what does this mean for Wall Street? What does this mean for market and investors? So, UBS chief economist Paul Donovan said that while these actions are dramatic, it's unlikely that it's going to dramatically impact markets because it's not going to change US policy. Inauguration Day is just two weeks away. And these calls for the 25th Amendment to be invoked, or even if President Trump's Cabinet were to actually remove him from office and actually follow through with that, it still wouldn't change US economic policy over the next two weeks.

But Donovan did caution this. He said that domestic investors will take a different view from international investors because peaceful transition of power is not common in certain areas of the world. And international investors with that kind of a background, it's inevitable that it will color their view of markets. And they will see what's happening currently in the US as a risk in US assets.

ALEXIS CHRISTOFOROUS: All right, Sibile, thanks so much.