Friday 18th September 2026
Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.
With the US midterm elections looming and the threat of Republican losses hanging over Capitol Hill, how much should investors actually care about a potential shift in congressional power? This weekend on the NAB Morning Call, Phil speaks with Michael Townsend, Managing Director of Legislative and Regulatory Affairs at Charles Schwab and host of the Washington Wise podcast, to break down the realistic market fallout of an impending balance-of-power shakeup. Michael explains why history points to Democrats likely flipping the House while the Senate hangs on a knife-edge, but cautions against overestimating the political noise: historically, Wall Street doesn't care who wins—it simply rallies once the uncertainty is over and gridlock prevents policy overreach. With stubborn inflation, Middle East supply shocks keeping gas prices high, Fed rate hikes, and corporate debt from the AI boom dominating the landscape, does the battle for Capitol Hill even matter to the bottom line, or has the market already learned to shrug off Washington's daily drama?
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