WASHINGTON (AP) – The midterm slugfest for control of the U.S. Senate could have far-reaching effects on the economy.
Tuesday’s elections come just as U.S. growth has been showing consistent improvement, thanks in part to a congressional truce on budget fights. Previous such fights shut down the government and raised the specter of a default on the federal debt. A repeat of either could damage the economic recovery.
If Democrats retain control of the Senate, the cease-fire may hold, analysts say. But it’s possible it could dissolve with a takeover that gives Republicans control of both chambers and potentially emboldens them to intensify conflicts with a lame-duck Democratic White House.
Republicans already control the House and are expected to maintain and even expand their majority in that chamber.
Addressing the prospect of Republican leadership in both chambers, Jack Ablin, chief investment officer at BMO Private Bank, said, “My sense is it will only harden the tension that’s in place.”