The Associated Press proclaimed both Democratic candidates as winners in the Georgia run-off election yesterday. This means the Senate will likely be split 50/50 between Democrats and Republicans, including the two independent senators, Bernie Sanders and Angus King, who tend to vote with the Democrats more than the Republicans. With President Trump likely running out of legal challenges, Vice President-elect Kamala Harris would then be the tiebreaker in the Senate, giving the Democrats a slim control of this chamber of Congress. While this does change our base case scenario of a Democratic-led House of Representatives and a Republican-led Senate, the small margin of control in the Senate will be an obstacle for passing more aggressive and/or controversial legislation. In addition, the Republicans picked up seats in the House of Representatives, narrowing the Democrats’ control there.
So, what does this mean for markets? For more insights, download our full commentary.
Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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