Candidates chosen by Trump lose in series and expose limits of the president's political power

American voters rejected, on Tuesday night (3), the Republican candidates that Donald Trump personally chose for the Senate in decisive races, according to InfoMoney, based on information from Reuters. The setback hit the party precisely at the points where the president most invested his political capital.

The vote was a mid-term election, in which part of Congress is renewed mid-government. According to the report, Trump asked voters to imagine themselves next to him on the ballot, in an attempt to turn his own name into an argument for voting.

The balance by state was negative for the candidates supported by him. According to Reuters, they lost in South Carolina, North Carolina, Texas and Michigan, across a geographic spectrum that runs from the South to the Midwest.

The defeats had a direct effect on the balance of forces in Washington. According to the report, they gave Democrats control of the House, which puts the opposition party in a position to block or shape the government's legislative agenda for the next two years.

In the report's assessment, the result exposed the limits of Trump's political power. Even within the party itself, presidential endorsement did not prove to be a guarantee of votes on election day, which forces the party to review its strategy for the upcoming disputes.

What changes for the investor

Changes in control of Congress often alter the pace of votes on budget, taxes and regulation. With the House under Democratic control, tax cut and fiscal adjustment proposals tend to face more resistance, and this is of interest to those who follow interest rates, the dollar and the trajectory of American public accounts. This is a reading of the political scenario, not a prediction of how prices will behave. For those who operate Nasdaq and other interest-sensitive assets, the point of attention is what this new balance will produce in concrete votes.

Automatically translated from Portuguese.