The greatest hopes – and worst fears – of both main political parties in the US went unfulfilled in the midterm elections on Tuesday, as the Democrats were projected to wrest a majority in the House of Representatives away from the Republicans, but at the same time will lose Senate seats.
That is the scenario most likely to shape up after the votes are tallied, and also matches most forecasts ahead of voting on Tuesday.
In the Senate, the Republicans had the 51 seats needed for control, while in the House of Representatives, the Democrats had passed the 218 they needed and had 219 seats.
A divided Congress will be welcomed by markets, analysts say, as it will portend no dramatic policy changes.
Markets in Asia and Europe mostly rose on Wednesday, but analysts warned about the economic impact from gridlock on Capitol Hill left the two houses of Congress split between Democrats and Republicans.
Donald Trump’s Republican party maintained its control of the Senate, but the Democrats regained power in the House of Representatives.
A series of high-profile gubernatorial and Senate elections that showed strong support for progressive Democrats broke early for Trump-endorsed Republicans, a result that helped Trump claim a victory, despite the loss of the House.
Tremendous success tonight. Thank you to all!
— Donald J. Trump (@realDonaldTrump) November 7, 2018
Policy implications are hard to discern, but most analysts see the polarized US politics as reason to expect gridlock in Congress, which means less volatility for markets.
One possible bipartisan policy agenda item would be infrastructure spending, which has been proposed by Trump and is traditionally supported by Democrats. But, depending on the margin of victory for Democrats in the House, even that is unlikely to be immune to partisan obstruction.
The result dooms the chances for another tax cut or making the existing tax cuts permanent. But the Trump administration’s deregulation agenda will likely be protected by officials already in place, which is a positive for the financial sector.
Despite the win for the Democrats in the House, the Republicans far outperformed expectations in Senate races, which will likely vindicate President Trump in his campaign strategy that emphasized the security threat of illegal immigration.
It also may embolden the US president to double down on his other controversial initiatives, including his foreign policy which seeks to challenge a variety of US allies and competitors on trade and security issues.
House Democratic leader Nancy Pelosi – who is set to become speaker, a position she held from 2007 to 2011 – told cheering supporters in Washington: “Thanks to you, tomorrow will be a new day in America.”
Michael Zhao I will keep laughing at you, while I walk round Peking seeing the young ladies prefering gweilos
Michael Zhao I will keep laughing at you, while I walk round Peking seeing the young ladies prefering gweilos
James O’Brien Exactly this. What is he hiding that he so desperately wants to end the investigation?
If Clinton can face 11 hours of consecutive Congressional testimony over Benghazi, I think Trump can face just 1 hour with Mueller to clear up any discrepancies.
James O’Brien Exactly this. What is he hiding that he so desperately wants to end the investigation?
If Clinton can face 11 hours of consecutive Congressional testimony over Benghazi, I think Trump can face just 1 hour with Mueller to clear up any discrepancies.
Zhao — Note since you wrote this Sessions has already been fired. I’m sure Trump is innocent, I don’t understand why he acts so guilty.
I’m also sure he doesn’t sleep with pornstars, he only gives them money as an act of charity.
Zhao — Note since you wrote this Sessions has already been fired. I’m sure Trump is innocent, I don’t understand why he acts so guilty.
I’m also sure he doesn’t sleep with pornstars, he only gives them money as an act of charity.
Winston Medved Typical right wing comment. Absolutely no substance and a non-sequitor.
White laugh at China and call the system a failure despite literally 40 years of sustained progress since 1979. The only Chinese form of government that would satisfy you is the one that would keep Chinese poor, and working in factories for Western corporations. How frequently is India lauded as the "worlds largest democracy", while having an abysmal development record.
I welcome you to keep laughing, while China keeps building and West continues to stagnate. Projects like the Zhuhai bridge and the entire HSR system aren’t even possible in the West anymore. Think about that.
Winston Medved Typical right wing comment. Absolutely no substance and a non-sequitor.
White laugh at China and call the system a failure despite literally 40 years of sustained progress since 1979. The only Chinese form of government that would satisfy you is the one that would keep Chinese poor, and working in factories for Western corporations. How frequently is India lauded as the "worlds largest democracy", while having an abysmal development record.
I welcome you to keep laughing, while China keeps building and West continues to stagnate. Projects like the Zhuhai bridge and the entire HSR system aren’t even possible in the West anymore. Think about that.
Not surprising. The Dems never were going to take the Senate, most of the seats that came up for reelection were in very Red areas. The 2020 Senate map will be much more favorable.
Make no mistake, the Dems won by 7.0 percentage points – in 2010 the GOP won by 6.8%, and Paul Ryan called it a "Revolution".
Trump will bluster on Twitter how this was a victory for him, but the House is more critical to the Dems right now. The first thing the Dems will do is demand his tax returns.
Not surprising. The Dems never were going to take the Senate, most of the seats that came up for reelection were in very Red areas. The 2020 Senate map will be much more favorable.
Make no mistake, the Dems won by 7.0 percentage points – in 2010 the GOP won by 6.8%, and Paul Ryan called it a "Revolution".
Trump will bluster on Twitter how this was a victory for him, but the House is more critical to the Dems right now. The first thing the Dems will do is demand his tax returns.
Ken Nguyen Well said comrade, 0.5RMB and 3 social credit points for you. You’re well on your way to finding a gf before they all run off with gweilos.
Ken Nguyen Well said comrade, 0.5RMB and 3 social credit points for you. You’re well on your way to finding a gf before they all run off with gweilos.
The system in China enshrines consensus and debates about issues are frequent and fierce, When a decision is reached, virtually everyone is satisfied, informed about the pros and cons, abide by and implement the decision. Voting on issues and election of senoir officials are fair, informed, representative and democratic in this one system model.
The system in China enshrines consensus and debates about issues are frequent and fierce, When a decision is reached, virtually everyone is satisfied, informed about the pros and cons, abide by and implement the decision. Voting on issues and election of senoir officials are fair, informed, representative and democratic in this one system model.
Choas, how much better to have a 1 party system, and any dissent is ruthlessly crushed.
Choas, how much better to have a 1 party system, and any dissent is ruthlessly crushed.
That is the scenario most likely to shape up after the votes are tallied, and also matches most forecasts ahead of voting on Tuesday.
That is the scenario most likely to shape up after the votes are tallied, and also matches most forecasts ahead of voting on Tuesday.