From UBS: Democrats Need Unity For The Next Two Years The Democrats need to think carefully about how to use the power they now have in Congress. There’s a risk of internal party splits, both in policy and intent. Politico highlights the challenge the Democrats have: avoiding an infight. It noted that Progressives are likely to be keen to wield political power, pursuing legislation on AI, healthcare and taxes. Moderates prefer to use the next couple of years as a signaling of intent for the bigger prize of 2028’s Presidential election. Indeed that argument is already playing out publicly as tv news networks have begun pitting Democrats against one another. Politico said the moderates are likely to revisit bipartisan bills that can be passed without much fuss. Progressives are immediately leapt into the AI regulation debate with now independent Senator Bernie Sanders, the cheerleader for that. The bright spot for a Democratic sweep comes in budget talks, government funding and the debt ceiling. Getting those bills through quickly and easily provide the right optics for Democrats. Finally, Fed chair Warsh is likely to find his Congressional hearings even more fiery. Senator Elizabeth Warren is likely to become chair of the Senate Banking Committee. Earlier in the year she accused Warsh of being no more than President Trump’s “sock puppet”.