U.S.: Democratic House, Republican Senate to provide legislative stagnation, more investigations

3 min
Dan North
Dan North Senior Economist for North America

The Democratic Party took control of the House of Representatives last night, while the Republicans maintained their majority in the Senate. The divided Congress is likely to produce another two years of political turmoil and legislative gridlock. Democrats have threatened to use their majority in the House to launch new investigations into President Trump’s affairs, perhaps including another Russian collusion probe, and a look into Trump’s personal taxes and international business dealings. Democrats could also begin impeachment proceedings although a removal from office is unlikely since that would require 67 votes in the Senate. It is doubtful that there will be any major legislative accomplishments over the next years as the Republicans in the Senate will defy the Democrats in the House, and vice versa. There are a few possible areas for bi-partisan action, however, including approval of the USMCA agreement and other trade measures, infrastructure spending, immigration reform, and drug pricing. President Trump will likely intensify his use of Executive Orders as his only way to govern effectively and implement his agenda.