Jim Chalmers Warns US Midterms Will Impact Global Economy

Australian Treasurer Jim Chalmers warned that the upcoming United States midterm elections will have significant economic consequences for Australia and the global economy. Speaking on ABC Radio, Chalmers linked rising cost-of-living pressures and global volatility to the war in the Middle East and decisions made in Washington D.C. and Tehran.

The elections, which include all 435 House of Representatives seats and one-third of the Senate, occur as President Donald Trump faces criticism over his actions in the conflict with Iran. Opinion polls suggest the Democratic Party may end Republican control of both houses of Congress, a shift that could limit the president's legislative power and appointment capabilities.

In Australia, the conflict with Iran has contributed to surging fuel prices and inflation exceeding four per cent. These conditions are expected to prompt the Reserve Bank of Australia to raise interest rates to an 18-year high, marking the fifth increase in 2026.