The elections created a split Congress which should produce gridlock.

The mid-term elections did nothing to resolve the direction of future fiscal policy . It did create an environment of gridlock in Washington. Financial markets generally like gridlock since it produces no change in current policies . At least corporations can make decisions within the context of no major shift in current regulatory and tax environments . It also means a reduced ability to enact trade policies which create uncertainty. It also means even greater pressure on deficits. Both political parties are ready to pass additional spending for infrastructure projects.

 

ProBank Austin Advisor - November 12, 2018