With Congress under Democratic control, Trump promises vetoes and the market sees the risk of impasse
Trump said he will veto opposition projects and admitted preventive pardons, while investors evaluate stricter regulation and higher taxes.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 2 MIN
Donald Trump has said he will veto bills approved by Democrats in Congress, signaling a confrontation with the opposition shortly after the midterm elections. According to Revista Oeste, the statement was given to Fox News on Tuesday night (11/3), when projections already gave Democrats control of both legislative Houses.
According to InfoMoney, based on Reuters, Democrats took over the Senate and House in Tuesday's vote. They also won in Republican strongholds for the first time in generations. Voters cited the war against Iran, the high cost of living and dissatisfaction with the Trump administration as reasons for the change of course.
In an interview with the Pod Force One podcast on Monday (2/11), Trump admitted granting preventive pardons to members of the government, if necessary, according to Times Brasil. He cited Biden as a precedent, remembering that the Democrat granted pardons to allies before leaving the White House, and said he would do the same if necessary.
In the same context, Trump promised to block opposition proposals if Congress comes under adversary control, according to Times Brasil. The speech indicates that the relationship between the White House and the Legislature should be marked by direct disputes in the coming months.
For the market, the scenario at play is the possibility of a legislative impasse between Trump and the Democratic Congress, according to Reuters. World stock markets fluctuated on Wednesday (4/11), and investors evaluate stricter regulation, higher taxes and oversight of artificial intelligence and cryptocurrencies.
What changes for the investor
The central point becomes how much of Congress's agenda will advance. If stricter regulation, higher taxes and oversight of AI and cryptocurrencies gain momentum, sectors exposed to these issues could come on the radar. A prolonged impasse tends to postpone decisions and can increase volatility. For those who defend less taxes and less regulation, these are precisely the points that demand attention. There is no buy or sell recommendation here, nor price forecast.
Automatically translated from Portuguese.
