In addition to Trump's bombastic Phoenix rally promise that he would shut the government, if needed, to build his "Great Wall", among the catalysts for today's risk off sentiment in the market was a bombshell NYT report according to which the relationship between Trump and Senate majority leader Mitch McConnell had "disintegrated", and the feud between the two esclated to a point where after a recent screaming fest on the phone, the two Republican leaders had not spoken in weeks, and that McConnell voiced doubts that "Trump can save the presidency", suggesting the animosity between the president and the most important person in Congress had never been worse.
Moments ago, McConnell responded to the NYT article, and without explicitly denying any of its findings, said that he continues to work with Trump on a "share agenda together and anyone who suggests otherwise is clearly not part of the conversation", and that his and Trump's teams remain in "regular contact" to prevent a US debt default.
- MCCONNELL SAYS HE AND TRUMP, THEIR TEAMS, `IN REGULAR CONTACT'
- MCCONNELL: COMMITTED TO ADVANCING `SHARED' AGENDA WITH TRUMP
- MCCONNELL SAYS HE, TRUMP WORKING TO PREVENT U.S. DEBT DEFAULT
Judging by the lack of reaction in the market, all McConnell managed to do with his comment is confirm the NYT's underlying story that there is now a wall of ice between the two political leaders, and that the probability of Trump passing any tax reform is virtually nonexistent.