Critical analysis from 42 foreign institutions after the US elections: Divergence of opinion on budget, dollar and artificial intelligence

Democrats winning both chambers of Congress in the U.S. midterms has prompted 42 foreign financial institutions to flag expected legislative gridlock in Washington, according to a survey of their assessments. Allianz projected the U.S. budget deficit could reach 6.6% of GDP by 2027, while Goldman Sachs warned that 45% of planned data center capacity faces restriction risk. The split views among the institutions center on budget policy, the dollar and artificial intelligence, underscoring uncertainty over how divided government will shape fiscal and tech investment trajectories. Investors will watch upcoming deficit projections and data center buildout decisions for signals on which scenario gains traction.