What the US midterms mean for the economy
Expect a louder fight, not a sharp change in direction
THE Democratic sweep in the US midterms on Nov 3 changes who sets the economic agenda in Washington far more than it changes the economy itself.
Democrats flipped seven Senate seats and more than two dozen House seats, which means they will take both chambers when the new Congress is sworn in on Jan 3, 2027. The new majorities in the House and Senate gain real leverage over government spending, borrowing and oversight.
But the biggest drivers of growth and inflation right now – from tariffs, to the Iran war, to the artificial intelligence investment boom – sit largely outside Congress’ direct control.
