Cost of living haunts Trump and Republicans on the eve of midterm elections
Trump blames Democrats for high prices, and the Senate race in Texas turns out to be unexpectedly close.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM ESTADÃO · 2 MIN
High inflation has become one of Trump and the Republican Party's biggest threats in the final stretch of the midterm elections in the United States. According to Estadão, on the eve of the vote, on Tuesday, Trump spoke at a rally in Corpus Christi, Texas, and stated: “I was elected because of high prices”.
At the same event, according to the newspaper, Trump blamed Democrats for the high cost. The strategy of attributing responsibility to the opposition comes at a time when the cost of living has gained weight in the dispute, an issue that Estadão directly associates with voters' mood.
In Texas, the Senate race appears unexpectedly tight, a sign that the election may not be smooth sailing for the party. The report places the state at the center of the picture that Republicans are trying to control.
Estadão also points to an internal factor: Trump's unfulfilled promises to deal with the problem. Trump returned to office in 2024, and now he needs to show voters that the promised progress has reached family budgets.
According to the report, high inflation threatens to overthrow Republicans in 2026, and control of Congress may depend on voters' anger over the cost of living. In this newspaper's view, fiscal responsibility and less pressure on prices remain the most solid way to gain voter trust, but the report does not detail specific measures under discussion.
What changes for the investor
A scenario of persistent inflation coupled with a disputed legislative election tends to increase the market's sensitivity to news about interest rates, the dollar and fiscal policy. If the result weakens Republicans and changes the balance in Congress, stock investors, including technology stocks traded on the Nasdaq, may reassess risks and expectations for the economic agenda. The facts gathered do not allow us to estimate price movements, and that is why it is worth monitoring the next inflation rates, the decisions of the American central bank and the final vote count.
Automatically translated from Portuguese.
