The U. S. economy is enjoying one of its longest stretches of growth in modern history. So how will the midterm election affect Trump’s economy?
The U. S. economy is enjoying one of its longest stretches of growth in modern history. So how will the midterm election affect President Donald Trump ’s economy?
There are three main potential outcomes that could have a significant impact on economic policies coming out of Washington.
This is the most likely outcome, according to polls. It would leave Democrats in charge of only one chamber of Congress, but that’s enough to stall any major legislation that Trump wants to advance, including economic policies around taxes, immigration, health care or trade. That could be OK if the economy keeps rolling ahead. But it also could raise the risk of confidence-rattling government inaction — government shutdowns, debt ceiling fights, and more.
A midterm victory could give added momentum to Trump’s agenda and provide the GOP with the mandate to get more done — even with slimmer majorities in the House. It could lead to more pro-growth policies around taxation, spending and regulation, but it’s unclear whether these measures are sustainable in the long term or just a temporary boost.
This might be the least likely outcome, but it’s probably the most volatile. Democrats in control of Congress could put more pressure on Trump — bringing new investigations into his conflicts of interest and taxes. How Trump would handle a more oppositional Congress is a big wildcard.
Watch the video above to get more details on how the midterms could impact the economy and your wallet.
