Trump is still in charge, but Democrats gain leverage in coming economic debate
SPY•Democrats are set to use control of Congress, including spending bills and debt-ceiling negotiations, to seek concessions from President Donald Trump on economic policy. The debate may focus on affordability, inflation and healthcare, with a possible government shutdown among the risks.
1. Congressional leverage
Democrats may use their control of Congress to press Trump on tariffs, healthcare and other policies, even though executive authority over trade and foreign policy remains largely with the president. Spending legislation and the debt ceiling give lawmakers leverage, and disputes could lead to a government shutdown.
2. Focus on affordability
Democratic leaders have signaled interest in healthcare reforms, tax policy and congressional authority over trade. Democrats may also use hearings and budget bills to challenge policies on immigration, environmental rules and agency operations.
3. Inflation and debt ceiling
The article puts unemployment at 4.2% and third-quarter growth at a 3.4% annualized rate, while inflation remains above the Federal Reserve’s 2% target. One strategist called debt-ceiling negotiations beginning late next year a natural point of pressure for possible deals.
