![]() ![]() Federal Reserve)." STUART COLE, HEAD MACRO ECONOMIST, EQUITI CAPITAL, LONDON Any spending measures being kept in check could bring inflation down and potentially we could see less aggressive moves from the Fed (U.S. "We see a gridlocked Washington as a dollar negative. The expectation is still for the Republicans to flip the House of Representatives. "It does look like it's a bit tighter than expected. "It's potentially also positive for stock markets and probably why we've seen a weaker dollar, but obviously, the main focus remains on tomorrow's CPI numbers and particularly the core number."įIONA CINCOTTA, SENIOR MARKETS ANALYST AT CITY INDEX, LONDON. "If the Republicans can get a blocking in one of the Houses, then ultimately, that could be less inflationary, because it will mean the Democrats won't be able to spend nearly as much money, so in terms of yields, that could be a good thing. We need lower inflation to keep our eyes off the Fed and start looking elsewhere." MICHAEL HEWSON, CHIEF MARKETS STRATEGIST, CMC MARKETS, LONDON "The perspective of that inflation number overshadows everything else, inclusive of the U.S. A legislative response to a potential recession would also be more difficult." FLORIAN IELPO, PORTFOLIO MANAGER, LOMBARD ODIER ASSET MANAGEMENT A similar scenario could play out next year, though a Democratic Senate would make it less likely that a debt limit deal would involve spending cuts of the sort enacted in 2011. "Under a Republican House and Democratic Senate in 20, debt limit uncertainty disrupted financial markets and led to substantial spending cuts. Scenario, and Republicans would lack the 2/3 vote to override) so the amount of legislative activity could be similar." Second, passing legislation in a divided Congress would be harder than in a Republican Congress, though in either scenario bipartisan support would be needed (as President Biden could veto in either First, the Senate confirms presidential nominations with a simple majority, so continued Democratic control would limit Republican influence on President Biden’s nominations over the next two years. There are two general differences between a divided Congress and a Republican Congress. "Senate control matters much less if Republicans have won the House majority. Nevertheless appears to be divided government and the policy implications are broadly similar to what would have been expected with Republican majorities in both chambers." ![]() "While Democrats outperformed expectations and Democratic Senate control would be a surprise, the end result ALEC PHILLIPS, ECONOMICS RESEARCH, GOLDMAN SACHS (by email) ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |