Trump credits the conflict with Iran for part of the Republican defeat at the polls
According to InfoMoney, the president tells Fox News that the war against Iran weighed on the midterm election, won by the Democrats.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
President Donald Trump began to attribute part of the Republican Party's defeat in the midterm elections to the conflict with Iran. According to InfoMoney, he told Fox News that the episode contributed to the result and repeated the assessment to The Wall Street Journal, stating: “Iran was a factor”.
The result redraws the balance of power in Washington. According to InfoMoney, Democrats now control the Chamber of Deputies and the Senate, which reduces the government's margin to approve its agenda without negotiating with the opposition.
The statement gains weight because, according to the same report, Trump maintained his decision to attack Iran even after promising “no new war”. The episode is part of the confrontation between the United States and Israel against Iran.
To the WSJ, the president defended the choice and stated that he did the right thing, saying he would make the same decision again. In other words, the official reading is that the decision is sustainable, even with the political wear and tear that he recognizes.
What is at stake is the government's ability to conduct foreign policy and economic agenda with a Congress under opposition command. For those who defend fiscal responsibility, this scenario tends to increase the dispute over public spending and make large-scale unilateral changes more difficult.
What changes for the investor
For those who follow Nasdaq, interest rates and the dollar, the central point is political and geopolitical risk. This type of uncertainty usually enters prices through expectations about the direction of spending policies and conflict. A divided Congress tends to slow down changes to economic legislation, an effect that can be read as neutral or negative, depending on the agenda that prevails. This article does not provide a buy or sell recommendation and does not predict price movements. It is worth monitoring the votes, the developments in the conflict and the government's statements before making any allocation decision.
Automatically translated from Portuguese.
