What it is
Impeachment is a formal process initiated by a legislative body to charge a public official, such as the President, Vice President, or federal judges, with "Treason, Bribery, or other high Crimes and Misdemeanors." In the U.S., the House of Representatives votes to impeach, acting as a grand jury. If the House votes to impeach, the official is then tried by the Senate, which acts as a jury. A two-thirds majority in the Senate is required for conviction and removal from office.
While rare, impeachment proceedings can introduce significant political instability and uncertainty, potentially affecting market sentiment. The focus on impeachment can divert attention from legislative priorities, impacting the passage of bills related to the economy or specific industries. For investors, the process can generate volatility as political risk rises, especially if it appears a president or other key official might be removed, potentially altering government leadership and policy direction.
Why it matters
Impeachment creates political instability and uncertainty, potentially disrupting legislative agendas and causing market volatility as leadership changes loom.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice