EconomyUnited States

Midterm results seen as check on AI firms and the Fed

A Democratic Senate majority could limit AI companies and datacenters and check the president's push to control the central bank. The midterm outcome matters for tech valuations and for how independent the Fed stays.

Illustration: A ballot box with a slot and a plain paper sheet being dropped in, layered in red and blue paper.
Illustration

Last week's US midterm elections have sharpened a rethink about artificial intelligence. The rethink is social, political and financial, and it was already growing before voters went to the polls.

The cost of living squeeze was a big driver of the Democratic wave. It followed the war in Iran, which President Donald Trump launched. AI was also on the ballot, in many places literally.

The results may not have cowed Trump. They are still a wake-up call for the technology leaders who lined up at his inauguration two years ago.

If Democrats won control of the Senate, they would hold their strongest lever so far against the president's push to take charge of the central bank. Such a majority might also bring more scrutiny to artificial intelligence companies and to the datacenters that run their systems.

GuideWhen is the next Fed meeting? The date and what futures price

Where
United States
Published
Section
Economy

This article is not investment advice. It was written by our automated newsroom from published reports and official statements, using only the facts in them, and not read by a person before it was published. Report a mistake

Back to the front page

More news

Illustration: The columned stone front of a central bank building with wide steps, carved in black lines with one emerald accent, seen from far away.EconomyBond yields climb as traders bet on more Fed rate hikesBond yields rose and the dollar climbed further as traders bet on more Fed rate hikes. Goldman Sachs expects two more hikes before any cuts, a move that means higher borrowing costs.US 10-year Treasury yielddown −0.54%1 monthIllustration: A set of stacked blocks forming a staircase beside a small factory and a crane, in sky blue and coral.EconomyEurozone economy grows 0.4% in third quarterEurozone GDP grew 0.4% in the third quarter, and annual growth rose to 1.3%. The European Central Bank is weighing another rate hike.Illustration: Seen from straight above, round storage tanks of a refinery sit in neat rows beside a tangle of pipes and a dark tanker at a pier.EconomyIndia seeks private investors for $910 million oil reserveIndia is seeking private investors for a $910 million oil reserve site that would lift its strategic capacity by 80%. Its trade deficit widened on festive import demand, and the US has promised India lower tariffs than its peers.Illustration: At night, a rain-wet airport currency exchange counter glows in cyan and magenta, with an empty stool and a blank illuminated sign reflected on the floor.EconomyUK, Singapore and Thailand complete linked settlement trialCentral banks in the UK, Singapore and Thailand completed a foreign exchange settlement trial linking traditional and tokenized systems. The Bank of England and other central banks also tested linked settlement and bonds issued on distributed ledgers.Illustration: A lone podium with a microphone in an empty hall, drawn in smudged charcoal with one bright pastel accent on the curtain.EconomyFederal Reserve drops October 2027 policy meeting from calendarThe Federal Reserve has taken a scheduled October 2027 rate-setting meeting off its calendar. The central bank will hold one fewer policy meeting next year, so the timetable for rate decisions changes.Illustration: A single suburban house with an unbranded plain sign planted in its front lawn, standing alone on a quiet street at golden hour, with no other homes sold nearby.EconomyUS existing home sales fall to lowest level since 2010Sales of existing US homes fell in October to their lowest level since 2010. Home prices were also described as hitting an all-time high, a mixed picture for buyers and sellers.