Ten months ahead of November’s midterms, political and economic crosscurrents are colliding. Which of these conflicting trends prevail will greatly shape the next two years. And possibly even longer.
Midterm elections are always important. Besides gauging the country’s political mood, they have proven integral to maintaining America’s political equilibrium.
They are the “ebb” to the “flow” of America’s political tide. Historically, every four years a large tide of voters go to the polls and elect a president. Then every two years, the large voter flow ebbs back and the president’s party suffers accordingly.
This midterm is particularly important to Trump because he has proven susceptible to being baited by his opponents. After 2018, Rep. Nancy Pelosi returned to the House speakership and unrelentingly harassed Trump over the last two years of his first term. These distractions and obstructions – especially during COVID – were undoubtedly a factor in Trump’s narrow 2020 electoral college defeat.
Today’s political crosscurrents are pronounced. As already mentioned, the president’s party historically loses seats. The last two two-term presidents, George W. Bush and Barack Obama, suffered congressional losses averaging 22 House seats and 7.5 Senate seats.
Such losses would give Democrats control of Congress: a House majority larger than Republicans’ current narrow one and a Senate majority larger than Republicans’ current six-seat one. Such outcomes would end Trump’s legislative agenda and Democrats could set their own. To understand the potential impact, play back the recent funding impasse when Democrats shut the government down for the longest period ever – despite not having control of either chamber.
While Trump would be able to veto Democratic legislation and Republican numbers would be ample to uphold his vetoes, Democrats would have a formal hand in shaping the political agenda. This could greatly help their 2028 presidential prospects.
However, current politics are blunting the historical midterm flow. Trump is divisive, with just a 43.4% favorable rating; however, his job approval rating of 43.1% is higher than Obama’s (42.4%) at the same point in his second term. Further, Democrats are in abysmal shape: just a 32.5% favorability rating.
The current 2026 political map is also favorable to Republicans. While they have more seats (by 22 to 13) to protect in the Senate, the toss-up seats are evenly split: Republicans with Maine and North Carolina; Democrats with Georgia and Michigan. Mid-decade House redistricting efforts are also likely to somewhat favor Republicans; if the Supreme Court should allow race to be disregarded in drawing House districts when it rules on the Louisiana case currently before it, then even more redistricting could occur and amount to an even greater Republican advantage.
Today’s economic crosscurrents are equally pronounced. For good or ill, incumbent presidents and their party own the economy. The question is: Which economy will Republicans own?
At the micro level, the growing issue is “affordability.” Nationally, this is an overhang of inflation that surged during Biden’s administration and peaked at 9.1% in June 2022 – a 40-year high.
Locally, affordability played well in New York City (which has been plagued by Democratic policies of rent control and excessive taxation, regulation, and litigation) in 2025’s mayoral race. It also played well in Virginia, where it linked powerfully into the record-long government shutdown. Democrats are therefore seizing on the issue with some success – particularly in the establishment media – and are trying to nationalize it.
At the macro level, the economy is a different story. Despite “expert” predictions that Trump’s tariffs, green agenda rollback, attack on illegal immigration, and reduction in government would combine to wreak the economy, the reverse has occurred. In Trump’s first two full quarters in office, GDP is averaging over 4% growth: up 3.8% in Q2 and 4.3% in Q3. Inflation has also been moderate – 2.7% in November – certainly not the spike experts predicted and a far cry from the previous four years.
So politically, depending on your perspective, Republicans look to outperform historically. Their Senate majority looks safe for now with the chance Republicans could even gain a seat or two. Contrastingly, Republicans’ House majority looks vulnerable; this could be offset slightly by current mid-decade redistricting efforts. Yet even just half the average loss of the last two administrations in their second midterms would mean an 11-seat swing and a 226-209 Democrat majority.
Economically, the question is whether the micro or the macro prevails. Can the micro become a national mood outside Democratic areas, or will the macro of strong GDP growth and moderate inflation have time to prevail? Expect political midterm fortunes to respond accordingly.
What is certain is that the midterms will shape the last two years of Trump’s second term. And possibly determine who will run and who will win the presidency in 2028.
