Democrats’ Senate wins not a gamechanger

With Democrats picking up both Georgia Senate seats in yesterday’s run-off elections, President-elect Joe Biden will have a much easier time confirming his picks for cabinet positions and the chances of a limited fiscal stimulus passing further down the line are a bit higher. But Biden’s major legislative priorities, including a large Green New Deal-style infrastructure package partly funded by higher taxes on high-income individuals and corporations are still unlikely to become a reality, so we are not minded to change our (above-consensus) forecasts for 2021 or 2022.