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CreditFlow: Talking Points (Europe IG)

IGC European Market: Talking Points (Europe IG)

13th October 2026

  • Given that the ‘mid-term elections’ in the US are having such a massive influence on geo-politics at the moment, today we talk about why they are so important to Trump, despite the 22nd Amendment precluding him from running for a 3rd term in office.
  • Firstly, as background the US Congress is the law-making branch of the US Federal Government, which is split into two distinct chambers ‘The House of Representatives’ & the Senate’. The mid-terms are elections held half way through a President's 4yr term in office where voters elect members to all 435 seats in the House of Representatives & about a third of the Senate.


  1. Currently, Trump's Republican party controls Congress, which allows him to pass key legislative priorities, confirm judicial nominees, & shape federal spending.
    1. Should the Democrats win control of the House of Representatives or the Senate, his ability to pass major legislation or tax revisions virtually halts.
    2. Senate control is vital for confirming administration officials, cabinet members, & federal judges including any potential Supreme Court vacancies. Losing the Senate would block future appointments.
  2. Losing either chamber of Congress dramatically alters the balance of power in Washington.
    1. A Democratic-majority House would gain subpoena power, allowing congressional committees to launch deep investigations into White House operations, executive orders, & federal agency actions.
    2. An opposition-held House could move to initiate impeachment proceedings against Trump or key administration officials. While a two-thirds Senate majority is required to convict & remove a president, lengthy investigations & hearings would create political friction.
  3. Trump’s power within the Republican Party relies heavily on his ability to act as the party’s ‘kingmaker’.
    1. Demonstrating that his endorsement carries candidates across the finish line reinforces his authority over congressional Republicans.
    2. Second-term presidents naturally risk becoming "lame ducks" as the political establishment turns its focus toward the next presidential election cycle. Maintaining loyal majorities helps keep party members aligned behind his vision rather than straying toward alternatives.
  4. Preserving his ‘Legacy’ & influencing 2028
    1. The outcome of the midterm elections serves as an initial referendum on Trump’s presidency & helps set the stage for the 2028 presidential race. A strong showing for his endorsed candidates helps ensure that "Make America Great Again" (MAGA) policies remain the central platform of the Republican Party for the post-Trump era.