Wall Street executives are bracing for potential changes to taxes and regulations following the Democrats’ sweeping midterm election victories, with some business leaders concerned about what comes next for the economy.
Top financial executives expressed concerns after Democrats won control of both the House and Senate in Tuesday’s elections, particularly over the growing influence of populist movements within both political parties, according to a report the New York Post published on Wednesday, November 4.
One major concern is the future of artificial intelligence, which has helped drive stock market gains. With Democrats taking control of Congress, lawmakers could launch investigations into AI companies, examining potential job losses and the construction of data centers, the outlet reported.
According to the article, cryptocurrency businesses could also face increased scrutiny, particularly because of President Donald Trump‘s family’s financial involvement in the industry.
However, Trump, 80, retains the power to veto legislation that would raise taxes or impose additional restrictions on businesses. His administration also continues to oversee federal regulatory agencies, limiting how much Democrats can change existing policies.
Meanwhile, per the New York Post, executives remain concerned about Trump’s tariffs, which can increase costs for businesses and consumers. The ongoing war with Iran has also contributed to higher gas prices, adding pressure to household budgets.
Rich Farley, an author and partner at law firm Herbert Smith Freehills Kramer, warned that neither political party appears likely to move away from its more populist members.
“MAGA is now 40 percent of Republican primary voters, and the DSA-types 35 percent of Democratic Party voters,” Farley said, per the report. “In each case they’re too big to purge.”
Farley added that executives “think extremism gets worse and will be inflamed by presidential candidates of both parties stalking out the populist ground both on the right and the left.”
The uncertainty extends beyond the next two years.
“It’s the era of overreach,” another unnamed executive said, per the report.
This story Wall Street Executives Fear Higher Taxes and AI Crackdown After Democrats’ Midterm Sweep first appeared on First for Money. Follow First for Money on Yahoo so you don’t miss what’s coming next.
