The blue wave of Democrats winning control of both the House of Representatives and the Senate in the U.S. midterm elections this week (with the final tally of seats still to be determined) could shape the outlook for regulation, fiscal priorities, and government oversight in the final two years of President Donald Trump’s second term. The Democrats’ flipping of both congressional chambers reinforces our view that the administration will rely heavily on executive actions to drive its agenda over the coming two years. Advancing legislation will rely on bipartisan negotiation, and we expect a focus on “must-pass†bills including government funding and the debt ceiling. The White House’s transactional approach to policymaking, particularly for trade and foreign policy, is likely
