US VOTERS DEMANDED ECONOMIC RELIEF . TRUMP AND DEMOCRATS FACE TOUGH CHOICES ON HOW TO DELIVER

What happened: Voters sent an election-year message to the new Democratic congressional majority and President Donald Trump to repair inflation damage to the economy. Why it matters: Divided government may give the Fed more room to fight inflation, with the Democratic Senate able to block Trump's Fed board picks. Economists said monetary and fiscal restraint are both needed, and deficit reduction would likely require tax increases and spending cuts.

Voters sent an election-year message to the new Democratic congressional majority and President Donald Trump to repair inflation damage to the economy.

Divided government may give the Fed more room to fight inflation, with the Democratic Senate able to block Trump's Fed board picks. Economists said monetary and fiscal restraint are both needed, and deficit reduction would likely require tax increases and spending cuts.