Control of the US Senate is at stake with Tuesday’s dual runoff elections in the US state of Georgia.
According to analysts at Goldman Sachs, a Democratic sweep would pave the way for an additional fiscal stimulus of around $60 billion on top of the recently enacted $900 billion. That would put more pressure on the US dollar and push treasury yields higher.
Key quotes
The greater fiscal stimulus would also likely mean tax increases to finance additional spending. However, an evenly divided Senate would approve only a fraction of the tax increases the Biden campaign proposed.
Prediction markets see nearly even odds that Democrats win both seats, up from around 20% seen after the November election.
Share
