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2026-11-05 14:06:26
[Syz Group: Midterm Election Results Slightly Negative for Growth, But Lower Energy Prices May Benefit Inflation and Household Purchasing Power] (1) Syz Group’s Reto Cueni stated in a report that the US midterm election results are slightly negative for growth by weakening fiscal and investment momentum; however, if energy prices fall, they could have a positive impact on inflation, interest rates, and household purchasing power. (2) The chief economist stated that for the US economy, the results create two opposing forces: weakened support for growth and a potential offsetting effect on the supply side. (3) With the Democrats controlling Congress and President Trump having veto power, the likelihood of another large-scale tax cut or spending package has significantly decreased. (4) Cueni stated that this deadlock reduces the likelihood of further fiscal stimulus measures but increases the risk of disruptive debt ceiling negotiations or a temporary government shutdown.
