The Democratic Party is projected to officially take control of the U.S. House of Representatives (DPR) in the 2026 Midterm Elections, while also gaining a strong chance of taking the Senate. This wave of Republican losses was driven by mounting public frustration over the high cost of living at home and the unpopular foreign policy of President Donald Trump’s administration regarding the conflict in Iran.
The transfer of power in Congress creates a divided-government scenario that immediately sends financial markets into turmoil. Investors are responding to this political uncertainty by reducing their exposure to risky assets: U.S. stock indexes have corrected, the U.S. dollar has weakened, and global funds have shifted to safe-haven assets such as government bonds. In addition, Democrats now have subpoena powers to investigate budget policies, tender projects, and the Trump family’s sprawling business empire.
Changes in the U.S. political landscape always have knock-on effects on emerging markets such as Indonesia. A weaker U.S. dollar and a divided political landscape in Washington could trigger a reorientation of global capital flows. At the same time, uncertainty over global trade policy requires market participants and the Indonesian government to remain extra vigilant in anticipating fluctuations in the rupiah exchange rate and foreign fund movements in the capital market. $USDC $XAU
The transfer of power in Congress creates a divided-government scenario that immediately sends financial markets into turmoil. Investors are responding to this political uncertainty by reducing their exposure to risky assets: U.S. stock indexes have corrected, the U.S. dollar has weakened, and global funds have shifted to safe-haven assets such as government bonds. In addition, Democrats now have subpoena powers to investigate budget policies, tender projects, and the Trump family’s sprawling business empire.
Changes in the U.S. political landscape always have knock-on effects on emerging markets such as Indonesia. A weaker U.S. dollar and a divided political landscape in Washington could trigger a reorientation of global capital flows. At the same time, uncertainty over global trade policy requires market participants and the Indonesian government to remain extra vigilant in anticipating fluctuations in the rupiah exchange rate and foreign fund movements in the capital market. $USDC $XAU
