Trump sacks FBI director James Comey

FBI director James Comey has been fired from his position by President Donald Trump, bringing to a head ongoing tensions between the commander-in-chief and the US intelligence agency.

In an unexpected announcement late on Tuesday, the White House confirmed Comey had been removed from his position due to his handling of the inquiry into Hillary Clinton’s email server.

Trump's decision was made based on recommendations given by Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein.

Critics of the decision to sack Comey have pointed towards the intelligence chief's continuing investigation into alleged links between the Trump camp and Russia during last year's presidential election campaign.

In a letter written to the former FBI boss, Trump said that Comey was no longer able to perform his duties effectively.

"While I greatly appreciate you informing me, on three separate occasions, that I am not under investigation, I nevertheless concur with the judgment of the Department of Justice that you are not able to effectively lead the bureau," Trump wrote.

"I have accepted their recommendation and you are hereby terminated and removed from office, effective immediately."

Comey testified in front of Congress related to his actions during investigations into Clinton’s use of a private email server, after he reopened the action shortly before the crucial vote last November.

DEMOCRATS CRITICISE DECISION

Democrats were quick to chastise the administration’s sacking of Comey, suggesting that Trump was attempting to influence the FBI inquiry into links between his campaign and the Kremlin. Some have called for an independent prosecutor to be appointed to investigate the allegations.

"Donald Trump's decision to fire FBI Director James Comey raises serious questions about what his administration is hiding," Democratic senator Bernie Sanders said.

"Trump has repeatedly taken steps to kill inquiries into Russia’s involvement in the U.S. election. It is clear that whomever President Trump handpicks to lead the FBI will not be able to objectively carry out this investigation," the former presidential candidate added.

Deutsche Bank analyst Jim Reid believes that the timing of Comey's sacking may delay any further news about Trump's long-awaited tax reforms.

"Trump confirmed that the bureau needs new leadership in order to restore 'public trust and confidence'. One implication of this for markets could be that it distracts from some of the more market-focused reform progress that we're still waiting for," Reid said.