[Dalio: Increased Internal Strife in the US After Midterm Elections Will Push Up Short-Term Treasury Yields] Bridgewater Associates founder Ray Dalio stated that the US midterm elections will not change core issues such as debt, wealth inequality and value polarization, geopolitics, climate, and technology. However, future partisan and intra-party struggles and government failures will intensify.
Trump's temporary funding expires on December 11th, and the federal debt is projected to reach its ceiling in March 2027. The Treasury Department is expected to run out of funds by the fall of 2027. This infighting will push up short-term yields on US Treasury bills, exacerbate concerns about liquidity and credit risk, and weaken the status of US Treasuries as a primary safe-haven asset globally.
Elizabeth Warren's appointment as chair of the Senate Banking Committee will trigger struggles and changes that will impact the economy and markets. The election results have made Trump a "lame duck" president under attack, weakening America's international standing and leading to strategic retrenchment while increasing the influence of regional powers like China.
