http://www.forexconspiracyreport.com/how-will-the-mid-term-us-elections-affect-the-us-dollar/
How Will the Mid-Term US Elections Affect the US Dollar?
In a couple of weeks Americans will go to the polls to elect all members of the 2019 House of Representatives, a third of US Senators, many state governors and state assemblies across the nation. This is the mid-term election that occurs half way between presidential elections. These elections commonly result in losses by the party holding the White House and controlling congress. But, how will the mid-term US elections affect the US dollar?
Trump Tax Cuts
The Trump tax cuts have further invigorated an American recovery that started in the early days of the Obama administration. As the US economy strengthens the Federal Reserve has backed off of its quantitative easing policy and is slowly but surely raising interest rates. The emerging trade war is causing havoc with emerging market currencies and driving the dollar steadily higher. But, now there is the distinct possibility that starting next year the Democratic Party will control the US House of Representatives and perhaps even the US Senate. If Trump policies have been the cause of continued economic strength, will Democratic control of Congress hurt the economy and result in a weaker dollar?
Pound Sterling Live looks at the midterm elections.
Democratic Party leaders and stalwarts have claimed throughout 2018 that November’s midterms will bring a “blue wave” to Washington that sweeps away the incumbents’ majority. This would enable them to frustrate the republican agenda and potentially even get the ball rolling impeaching President Trump.
Republican rivals have been quick in pointing toward Trump’s stewardship of the economy, which has grown faster in 2018 than it did in 2017 as other parts of the world have experienced a slowdown, and also been keen to flag pledges made on the 2016 campaign trail that have since been implemented.
The fact of the matter is that while tax cuts, deregulation, and repatriation of corporate cash from offshore have resulted in a short term economic boost, all of this comes at a price.