In view of James Knightley, Chief International Economist at ING, while it was not a great outcome of US midterm presidential elections for President Trump, it could have been worse.
“He clearly had plans to press on with infrastructure spending and further tax reform in the second half of his presidential term and while the policies are not dead, they are likely going to be curtailed or heavily revised by a Democrat-controlled House.”
“Bi-partisanship will be required for progress to be made and for President Trump to generate a strong platform to defend his Presidency in 2020.”
“However, the US economy will face an increasing number of challenges over the next couple of years as support fades from the fiscal stimulus and weaker global growth (contributed to by President Trump’s trade protectionism), a stronger dollar and higher interest rates provide increasing headwinds.”
“A weaker economy and potentially falling asset prices and household wealth would compound the problems for President Trump.”