Midterm market impact depends on election friction and economic pressures, advisory chief says

The market fallout from upcoming U.S. midterm elections will largely depend on the degree of political contention surrounding the vote, according to Kevin Kajiwara, co-president of political risk advisory at Teneo.

Speaking on Bloomberg's "The Close," Kajiwara highlighted voter affordability as a primary concern shaping the economic outlook. He pointed to international trade tariffs and active geopolitical conflicts as key drivers of elevated fuel prices and broader inflationary pressure. Furthermore, Kajiwara observed that high interest rates and deteriorating fiscal conditions are creating additional headwinds for financial markets. He noted that market participants are closely evaluating how these macroeconomic factors and post-election policy shifts could influence long-term stability.

Sources: Bloomberg