Economist Justin Wolfers has a question for the incoming Congress, and it's not about committee assignments. Tuesday's midterm results, he says, sent a message from voters about the economy. Now comes the test: is the new Congress willing to stop President Donald Trump, who has governed almost entirely without it?
Trump Ran the Country 'Almost Entirely Without Congress,' Economist Justin Wolfers Says — Now the Midterms Test Whether Anyone Will Stop Him
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Wolfers Says Congress Played Little Role in Trump's Biggest Decisions
In his blog, 'Platypus Economics', published Thursday, the University of Michigan economics professor said he spent two years reading about what the president decided to do on tariffs, immigration and the war in Iran.
"Trump has governed almost entirely without Congress," he said on X, adding that "the real question for this next Congress is if anyone will decide to stop him."
A shrinking retirement fund, a health care system "full of holes" and artificial intelligence that could upend the workforce are "exactly the kind of problems that a Congress exists to solve," Wolfers said.
Trump Signals Willingness to Work With Democrats
Before the election, Trump said in an interview with the New York Post that he would become "Mr. Veto" if Republicans lost the House, though "at some point, we'll probably make deals."
After Democrats won control of Congress, Trump told The New York Times he was "absolutely willing to accept" the results and expects to "work something out" with them.
Wolfers cautioned that a deal-making Congress is not guaranteed.
"There's still a veto, a filibuster, and a very real possibility that nothing's different next year," he said.
Voters Feel the Cost
In a poll Wolfers cited, three-quarters of voters called the economy "not so good" or "poor," and four in 10 said it was the most important issue facing the country.
Consumer prices rose 3.7% from a year earlier in September, up from 3.4% in August, with gasoline up 34.2%, the Bureau of Labor Statistics reported.
The war in Iran and disruptions to shipping have added volatility to energy markets.
The war in Iran has pushed gasoline prices sharply higher for Americans.
The national average for regular gasoline was $4.1003 a gallon on Thursday, down from $4.2258 a week ago but well above $3.0790 a year ago, according to the American Automobile Association. Diesel averaged $6.2564, compared with $3.7049 a year earlier.
Price Action: The State Street SPDR S&P 500 ETF Trust (NYSE:SPY) closed 4.41% lower at $733 and fell 0.02% in overnight trading to $732.86. The Invesco QQQ Trust (NASDAQ:QQQ), which lost 6.49% to close at $647.05, rose 0.88% to $652.72 in overnight trading.
MarketDash Edge rankings indicate the State Street ETF has a Momentum score in the 65th percentile, with a negative short-term price trend and a positive medium- and long-term trend.
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