The second round of elections in the state of Georgia in the United States ended on Tuesday, with 98% of the votes cast in 159 constituencies as of Wednesday morning. According to polls, two Democratic candidates are winning by a small margin. State election results will be decisive in which party wins the majority of the votes in Congress.
On Tuesday, the second round of elections in the state of Georgia, USA ended, the “alignment of forces” in the American Congress will depend on the results of the elections. Exitpoles report a record turnout and high voter turnout – over 3 million voters.
In the November elections, neither Democrat John Ossoff nor incumbent Republican Senator David Purdue managed to get 50% of the vote: they received 48% and 49.7% of the vote, respectively. However, according to the social. polls, in the second round, Ossoff received less than 1% more votes: 50.2% versus 49.9%.
In the competition between incumbent Republican Senator Kelly Leffler and Democrat Rafael Warnock, the votes were distributed with a difference of 1%: 50.6% versus 49.4%, respectively.
If this narrow margin is confirmed by the official announcement of the election results, the Democratic Party will receive a majority of the votes in Congress.
Democrats have a majority in the House of Representatives, the votes in the Senate will be split 50-50, the casting vote will belong to the Vice President: from January 20, 2021, he will be a member of the Democratic Party Kamala Harris.
Given the election of Democrat Joe Biden as president of the United States, the party will have the leverage it needs to implement its campaign agenda, which includes budget increases to tackle the COVID-19 pandemic, and debt-funded infrastructure and renewable energy investments.
Many market experts point out that an outright Democratic victory would be generally positive for economic growth and therefore for most risky assets, but negative for bonds and the dollar, as the US budget and trade deficit will grow even more.
If at least one Republican wins the election in Georgia, their party will receive 51 out of 100 seats in the Senate, Democrats now occupy 48 seats and they need two winners to completely win.
At the same time, a Democratic victory could bring higher corporate taxes and tighter regulation, especially for large technology companies, which will be viewed negatively by Wall Street. With the Democratic Party’s agenda to support green energy, analysts predict an increase in regulatory risk for fossil fuel companies.
Former Trump senior economic adviser Steve Moore said on Tuesday: “I looked at the evidence of what has happened in the past 60 years or so with the stock market in terms of three different scenarios: one – Republicans control everything in Washington, second scenario – Democrats control. everything is in Washington, the third is shared power control. In general, the best scenario for economic growth is power sharing. The worst-case scenario in the last 50 or 60 years is when Democrats control all levers of power, so I think the historical record is clear enough on this point that today’s democratic dominance will be bad for the markets. ”
Major US stock indices reacted negatively to exit polls, declining in non-trading hours prior to trading on Wednesday.