November 29, 2022
Mary R. Anderson, Investment Strategy Analyst
Douglas Beath, Global Investment Strategist
Gary Schlossberg, Global Strategist
Michael Taylor, CFA, Investment Strategy Analyst
Jennifer Timmerman, Investment Strategy Analyst
Michelle Wan, CFA, Investment Strategy Analyst
What Do The Midterm Election Results Mean For Markets?
Overview: Highlights and implications of the midterm elections
What could the midterm election results mean for markets through year-end?
This year’s midterm elections saw many tight congressional races, particularly in the battleground states of Arizona, Georgia, and Pennsylvania. Republicans won a narrow majority in the House, and Democrats retained control of the Senate. Down-ticket races at state and local levels also were mixed. We now look ahead to the 2023 legislative session.
Ahead of a House leadership change in January, we look for a very active lame-duck session given the brief window to pass legislative priorities. We expect that a fiscal year 2023 budget and spending bill alongside the debt ceiling will top the list, as the current continuing resolution ends on December 16. A busy lame-duck session could capture market attention as lawmakers horse-trade under a tight time frame.
In this month’s report, we review our expectations for the lame-duck session, discuss likely executive and legislative priorities for the new Congress in 2023, and consider implications for the markets and investors.