What the Democrats' midterms win means for the US economy and Trump

From high oil prices and data centers to tariffs and mounting debt, economic concerns played a key role in the crushing defeat of President Donald Trump's Republicans. But can the Democrats now make a difference? So what does the Democrats' stunning capture of both the US Senate and House of Representatives mean for the economy and economic policy, given that President Donald Trump still has two years of his term to run?

Initial market reaction has been muted but trending negative. Global stocks fell slightly, while the dollar followed suit. With Democrats now holding comfortable majorities in both houses of Congress and Trump still in the White House, it could lead to gridlock in Washington.

Trump has already said he would become "Mr Veto," meaning he would block any legislation the Democrats advance. "I think we are looking at two years of complete 100% gridlock," Jacob Funk Kirkegaard, nonresident senior fellow with the Peterson Institute for International Economics, told DW after the results came in.