Why the Fed Could Loom Large Over the Midterms

Andrew here, heading back to New York. Did the capital of capitalism just undergo a major political realignment? That’s the big question on Wall Street after a slate of progressive candidates backed by Mayor Zohran Mamdani swept New York City’s congressional primaries, unseating prominent moderate incumbents in a stunning show of influence.

For decades, New York operated on a tacit agreement: Elect social liberals, but protect corporate capital. What will happen now that a political faction openly skeptical of big business is poised to represent the city in Congress?

The most immediate friction point will be the tax code. Will an emboldened progressive bloc demand wealth taxes, or will the fear that the wealthy will flee en masse to low-tax states keep such proposals at bay? And what does this mean for the national political picture? Let me know what you think.

High interest

The SP 500 is having a rough month, with more choppy trading expected around Thursday’s big inflation report.

Article source: https://www.nytimes.com/2026/06/24/business/dealbook/fed-midterms-rates.html