Home » Markets » Market experts explain why political gridlock is economy’s ‘best case scenario’
Market experts explain why political gridlock is economy’s ‘best case scenario’
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With control of Congress still up for grabs Wednesday following Election Day, some market analysts are signaling that a political gridlock by Republicans may be a positive for Wall Street and the U.S. economy.
"Gridlock is good from a market perspective because of the fact that we don't have to worry about any major tax reform or major regulations over the next two years," Key Advisors Group co-founder Eddie Ghabour said on "Varney & Co." Wednesday.
Thru the Cycle President John Lonski also told host Stuart Varney that cracking Democrats’ power "is good for the economy."
"You're going to go ahead and put a lid on government spending, government regulations as well as taxes, so that can only be viewed as a positive," Lonski said. "Right now, we are suffering from too much in terms of government spending, the rise in regulations and higher taxes."
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If Republicans take the majority of seats in either chamber, then they have the ability to reject legislation brought to the floor by President Biden and the Democratic Party. As of Wednesday afternoon, three races in the Senate are too close to call, but Republicans could still gain control of the House.