Potential outcomes for the US Midterm Elections: Policy and market implications

Historical precedent points to better markets post the elections, but this time around, there is a reactive Fed which is still in a rate hike mood

Ajay Bagga
November 02, 2022 / 10:33 AM IST
Potential outcomes for the US Midterm Elections: Policy and market implications

(Image: AP/File)

Highlights  The US mid-term elections to the House of Representatives and Senate are due on November 8  Since 1922, on average, the incumbent President’s party loses seats both in the House and the Senate  The Republicans have a high probability of winning control of one or both chambers of the US Congress   A Republican controlled House would mean there is little chance of fiscal relief in a recession in 2023  Stocks usually perform strongly following the midterms  But this time, much depends on the...