US Midterm Elections Reshape Congressional Power Balance

Democrats won a larger-than-expected majority in both the US House and Senate in the midterm elections, shifting the balance of power in Congress. President Trump has stated he will use his veto power to block legislation from the new Democratic-controlled Congress. The party has secured 54 Senate seats and 225 House seats, with both numbers likely to grow. A Democratic Congress will subject the president's agenda to stricter scrutiny, and parliamentary investigations are expected into his administration and AI security. Trump retains broad powers over foreign policy, including potential US intervention in Iran, and executive orders limit changes on immigration and trade. Democratic victories in gubernatorial races, including in Texas and Ohio, may enable regulatory changes for data centers. The party will likely push to restore healthcare funding cuts from the One Big Beautiful Bill Act, potentially leading to a moderate fiscal loosening. The results will also impact 2028 primaries, with Trump-backed candidates underperforming in key races, potentially broadening candidate fields in both parties.