Markets Brace for Washington Policy Battles

Joe Livornia analyzes the recent election's focus on affordability and corruption, concluding that the resulting political gridlock will limit substantive policy shifts while Treasury Secretary Scott Bessent and Chief of Staff Stephen Miller navigate key issues like Iran sanctions. Although markets initially reacted negatively to the new administration's perceived volatility, Livornia forecasts a recalibration driven by a healthy U.S. labor market and potential commodity price relief from a Middle East resolution. Looking ahead, he predicts minimal regulatory traction and a contentious legislative environment leading up to the 2028 presidential cycle, even as long-term economic fundamentals remain robust.