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CRU: With congress divided, Biden's ambitions will be limited

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News provided by

CRU

17 Nov, 2020, 09:00 GMT

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LONDON, Nov. 17, 2020 /PRNewswire/ -- It now seems clear that Joe Biden will become US President in January. However, it is likely that the Republicans will maintain their Senate majority. This will significantly limit Biden's ability to implement his economic policy agenda. In this Insight we revisit our previous analysis of his plans and look at what could still be possible. Trade is the area where the lack of a Senate majority will be least constraining. For fiscal and green policies, he will need to limit his ambition and compromise.

A divided congress, a divided country

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With congress divided, Biden's ambitions will be limited

It now seems clear that Joe Biden will become US President in January, although Trump has launched a range of lawsuits challenging the process.

The Democrats did not make the gains in the Senate they were hoping for. The Republicans have 50 seats. Including two independents who vote with them, the Democrats so far have 48 seats in the Senate. To gain a majority in the Senate, Democrats must win both the run-off races in Georgia taking place on 5 January. As Vice-President Kamala Harris will be able to pass the deciding vote in the event of a tie, 50 seats would give the Democrats a working majority.

If the Democrats manage to win both Senate races, Biden should be able to push ahead with his ambitious policy programme. However, winning both races will be difficult in a historically Republican state – although continued refusal to concede by Trump could damage the Republican Party's standing in these races.

If the Republicans retain their Senate majority, they are likely to obstruct many of the legislative priorities of the future Biden administration. This would leave Biden with three options to try and achieve his goals.

Read the full story: https://www.crugroup.com/knowledge-and-insights/insights/2020/with-congress-divided-bidens-ambitions-will-be-limited/

Read more about CRU: http://bit.ly/About_CRU

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high quality service, small enough to care about all of our customers.

Photo: https://mma.prnewswire.com/media/1335507/CRU_With_congress_divided.jpg

Logo: https://mma.prnewswire.com/media/536199/CRU_Logo.jpg


 

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