US Midterm Elections: Potential Economic Agenda and Market Implications

Tuesday 09 October 2018

Market Insights

In the upcoming US midterm elections on November 6, there are high expectations of divided Congress, with the Democratic Party taking control of the House of Representatives and the Republicans – or Grand Old Party (GOP) retaining control of the Senate. Other scenarios are possible: the GOP could maintain control of Congress or the Democrats could sweep both the House and the Senate.

In this piece, we examine some of the reasons why we believe the most likely election outcome is a divided Congress. We then look at the economic agendas for both parties and potential issues around their implementation. Finally, we analyze possible investment implications on US equities and fixed income markets.

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