Page 13 - ISQ January 2021

JANUARY 2021

Biden’s picks receive a confirmation vote. This likely alters some of
the individuals that Biden nominates to the final key positions and
will have a significant impact on the agencies with boards. Senate KEY TAKEAWAYS:
rules still allow delays in confirmation votes, which were used • The policy outlook for the next year, while dominated
effectively by Democrats in the minority to slow the confirmation by the COVID-19 response, will also look to advance
process during the Trump administration. a Biden administration’s economic priorities in the
areas of energy and the environment, manufacturing,
Generally speaking, Biden’s cabinet picks to date have signaled trade, and consumer protections with the associated
a prioritisation of economic recovery and growth over a robust market impact.
regulatory rulemaking agenda. However, a Biden administration
will have significant regulatory levers at its disposal – even before • With a 50-50 tie in the Senate, control of the chamber
nominees are confirmed by the Senate. goes to the party of the vice president, which will be
Kamala Harris, making a 50-50 Senate a Democratic
We expect a significant focus in the early part of 2021 will be on majority. Senator Chuck Schumer (D-NY) would
an agenda of consumer protection. The Biden administration’s serve as Senate Majority Leader and would be in
authority in this area is greater following the Supreme Court’s control over which bills and nominees receive a vote
ruling in the Seila Law v. Consumer Financial Protection Bureau in the Senate.
(CFPB) which gives the president immediate authority to fire and
replace the Consumer Financial Protection Bureau Director at • Generally speaking, Biden’s cabinet picks to date have
will. We expect this will be one of the earliest opportunities for the signaled a prioritization of economic recovery and
Biden administration to demonstrate a consumer protection focus growth over a robust regulatory rulemaking agenda.
to progressive lawmakers. • While a Democratic sweep may raise fears of sweeping
policy changes, we expect moderate policy adjust-
THE 2022 MIDTERMS ARE OFFICIALLY UNDERWAY ments with a focus on economic recovery that supports
markets over the long term.
It’s never too early to look to the next election. We expect a fur-
ther moderating factor in terms of policy will be the greater than
expected losses suffered by Democrats in the House in the 2020
cycle. Republicans are now within striking distance of taking back
the majority in 2022 – requiring five net seats gained to flip the
chamber. To conclude, while a Democratic sweep may raise fears
of sweeping policy changes, we expect moderate policy adjust-
ments with a focus on economic recovery that supports markets
over the long term.

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