If impeachment proceedings drag on, it is possible that they will have little effect on the economy.

For months we have been talking about the possibility of the trade wars having an effect on the economy and the markets. The start of the impeachment inquiry looks like it also will break out into a full-fledged war. Thus far, the markets have not reacted greatly to the salvos being fired back and forth, but that does not mean that the activity does not bear watching. 

It is conceivable that this probe and possible proceedings will go on for some time. If they do, the markets could very well become immune to all the noise. On the other hand, if things heat up at times, this may shed even more light upon this battle. While there has been little effect upon the markets in the initial stages, it is hard to fathom that a protracted war might not be another factor suppressing consumer confidence. 

This possibility certainly will be monitored by the markets. As we have seen, the economy is already slowing down. The trade war is not helping stimulate the economy and it is doubtful that the impeachment battle will either. As a matter of fact, lower interest rates seem to be the only factor boosting consumer behavior right now. And with the wars going on, rate stimulus might be with us for a while. Next week we will see what the Federal Reserve Board will say about that.