Syz Group chief economist Reto Cueni said in a report US midterm election
results could slightly dent economic growth by weakening fiscal and investment
momentum, while a decline in energy prices could help curb inf, reduce
interest-rate pressure and boost household purchasing power. He said the outcome
creates two opposing forces: diminished policy support for growth versus
supply-side improvements that may partially offset the hit. With Democrats
controlling Congress while Trump retains veto power, the likelihood of large new
tax cuts or spending packages is materially lower. Political gridlock lowers the
odds of further fiscal stimulus but raises the risk of disorderly debt-limit
negotiations or a temporary government shutdown.
