Millions of Americans voted in the US midterm elections which began on November 8, 2022, to elect 435 members of the House of Representatives and 35 members of the Senate. These elections occurred when inflation in the United States is at its greatest level in 40 years, in addition to the rise in the price of goods and services and gasoline, declining economic activity, and increasing recession fears.
The Democratic Party won the seat it needed to retain control of the Senate, a decisive victory for the continuation of the presidency of Joe Biden, according to media reports, the number of Democrats elected to the Senate rose to 50 out of 100, allowing Biden's party to control this chamber, given the casting vote goes to Vice President Kamala Harris and US President Joe Biden said he was very satisfied with the outcome of Tuesday's midterm elections.
The results of the House of Representatives may require a few more days but it appears like the Republicans will take control of the majority of seats in the House of Representatives and this may go against Biden’s current policy and disturb his future goals and plans.
According to analysts, in case the Democratic Party wins this means complete control and this may negatively affect the markets as it raises concerns about the continuation of inflation and entering the economy in a recession because the Democratic Party’s policy is to increase spending, which led to an increase in inflation.
In case the Republican Party wins this may positively affect the markets, given that the Republican-controlled Congress usually leads stocks and risk assets to rise more, and this also indicates a less tight monetary policy, which reduces inflation fears and also reduces fears of entering the economy in a state recession.
The content present in this report is informative only. The information may be sourced from third party data and financial markets providers, and CFI Financial Group Holding Limited together with its regulated subsidiaries, will not be held liable or responsible in any way for any loss and/or action taken by investors based on this report, therefore, in respect investment decision investors will act on their own judgment and experience or on independent advice they may choose to seek from their financial advisor(s). We do not provide investment advice with an objective to influence your decision. Content of this report serves information purposes only and shall not be considered as ancillary or investment services, nor advice.
We provide general information & analysis that does not take into account your objectives, financial situation, personal circumstances, or needs. You should always consider your trading objectives and risks preferences; therefore, you should not invest funds you cannot afford to lose The content and data/ information presented in this report is provided solely to enable you to make your own investment decisions and must not be interpreted as personal advice and/ or recommendation.
The content present in this article reflects the opinions and views of the authors and does not necessarily reflect the position of CFI. The Company is not responsible for the decisions and choices of the investor who has full and free will to make decisions that they see appropriate upon the investment.
“This publication is CFI’s sole property. It is provided under the agreement that it will be viewed by the person or company who receives it and will not be distributed and/or reproduced. Any individual or company who is found distributing or reproducing this report will be traced and charged with copyright infringement”.