How the midterms Election could impact Dollar
Option #1: If Democrats win House, GOP holds Senate
This is the most likely outcome, according to polls. It would leave Democrats in charge of only one chamber of congress, but that's enough to stall any major legislation that Trump wants to advance, including economic policies around taxes, immigration, health care or trade. That could be OK if the economy keeps rolling ahead. But it also could raise the risk of confidence rattling government inaction – government shutdowns, debt ceiling fights, and more.
Option #2: Republicans keep both
A midterm victory could give added momentum to Trump's agenda and provide the GOP with the mandate to get more done — even with slimmer majorities in the House. It could lead to more pro-growth policies around taxation, spending and regulation, but it's unclear whether these measures are sustainable in the long term, or just a temporary boost.
Option #3: Democrats sweep
This might be the least likely outcome, but it's probably the most volatile. Democrats in control of Congress could put more pressure on Trump – bringing new investigations into his conflicts of interests and taxes. How President Trump would handle a more oppositional Congress is a big wildcard.👍👍