US Elections: DJ Trump in the house – Rabobank

Philip Marey, Senior US Strategist at Rabobank, suggests that while a lot can be said about the Republican National Convention in Cleveland, few political pundits had predicted that Donald J. Trump would get the GOP’s nomination for President of the United States.

Key Quotes                               

“While the attention is on the nomination of Trump this week and Clinton next week, the implications for US fiscal policy critically depend on the election outcomes for the House of Representatives (all seats at stake) and the Senate (1/3 of the seats at stake) on November 8.

After all, most laws are written on Capitol Hill, not in the White House. Once the Senate and the House agree on a bill, it is sent to the President for final approval or veto. So the President has to work with Congress to get his plans written into law, except for so-called executive orders (which are subject to judicial review).

For the balance of power, there is a major difference whether – for example – a Republican President has to deal with a Democratic Congress, or whether he finds his fellow Republicans in control of Capitol Hill in January 2017.”