Democrats’ Midterm Wins Mean ‘Not Much, At Least Not Right Away’ for Economic Policy, Says Top Economist, As Trump Holds the Veto Pen

Moody’s Analytics chief economist Mark Zandi said on Sunday that Democrats’ midterm wins will do little for economic policy right away because any bill to ease Americans’ financial strain needs President Donald Trump‘s signature.

Veto Threat Pushes Democrats Toward Oversight

Before the elections, Trump told the New York Post that he would become “Mr. Veto” if Republicans lost the House, though he added that deals would likely follow eventually.

Zandi said the midterm results mean “not much, at least not right away” for economic policy. Democrats won the House and Senate, but Trump’s signature “will be hard to come by.”

The new Congress still has some levers, Zandi said.

He expects Democrats to use hearings, oversight and a war powers resolution vote to build pressure to end the war in Iran, which has cost the typical household an estimated $2,200 so far.

Ending the war would ease costs for oil, diesel, jet fuel and home heating, Zandi added.

What do the midterm results mean for economic policy? Not much, at least not right away. Democrats won the House and Senate, but easing the financial strain on many Americans would take legislation, and that requires the President’s signature, which will be hard to come by.

— Mark Zandi (@Markzandi) November 8, 2026

The war has cost the U.S. military more than $47 billion, according to Pentagon data Reuters cited.

A Lame-Duck Budget Fight Could Shift Leverage

Another opening may come in next year’s lame-duck session, Zandi said.

“If Republicans can pass a budget and raise the Treasury debt limit on their own through reconciliation, Democrats will have less leverage,” he wrote.

With Republicans’ paper-thin House majority, Zandi said the odds are “reasonably good” that they will fall short and Democrats could then use their votes to restore enhanced Affordable Care Act subsidies and reverse SNAP and Medicaid cuts.

Democrats Vow Affordability

Democrats have campaigned on lowering prices for voters squeezed at the pump, at the grocery store and on utility bills.

Following the Tuesday night win, House Democratic Leader Hakeem Jeffries (D-N.Y.), the presumptive House speaker, pledged to fight to make the country affordable for every American.

Investor Peter Schiff said Democrats say they will fight to lower prices, but prices will keep rising unless they cut government spending, because the Federal Reserve is monetizing deficit spending.

Price Action: The State Street SPDR S&P 500 ETF Trust (NYSE:SPY) closed 0.31% higher on Friday at $735.29 and was up 0.38% in overnight trading early Monday to $738.05.

Benzinga Edge rankings indicate the State Street ETF has a Momentum score in the 56th percentile with a negative price trend in the short and medium term. Over the long term, it has a positive trend.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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