Midterm Campaign Spending Soars as Economy Grows Amid Persistent Inflation

Ad spending in several Senate contests has risen dramatically, with Kansas seeing a ten-fold increase in the weeks before Election Day, according to data from AdImpact. Democrats are directing money into traditionally Republican districts, while President Trump is campaigning in South Carolina and holding a tele-rally for the Louisiana Senate race, both states he won by large margins in 2024.

Economists expect the latest gross domestic product (GDP) figures to show stronger growth than the 2.2% annual pace recorded in the spring, driven by continued investment in artificial-intelligence data centers and robust consumer spending. Moody's chief economist Mark Zandi described the expansion as "very, very fragile," citing inflation and higher energy costs linked to recent trade policies and the U.S. conflict with Iran.

Inflation remains above the Federal Reserve’s target, with consumer prices up 3.7% year-over-year in September, according to the Labor Department. A separate Commerce Department reading, which the Fed monitors closely, is also expected to show elevated price growth.

"It's more noticeable now with, like, the price of gas going up and the price of food going up, and bills, like our utilities, go up. Like, everything is increasing, and wages just aren't really increasing with that," said Siri Steven, a resale store manager in Decorah, Iowa.

The Federal Reserve has held interest rates steady after a September hike, arguing that further increases could hurt borrowers and mortgage rates ahead of the midterms. Officials denied that the timing of policy decisions is influenced by the elections.

In Israel, the parliamentary election remains deadlocked, with neither Benjamin Netanyahu’s bloc nor Gadi Eisenkot’s coalition reaching the 61 seats needed to form a government. Analysts noted that a renewed conflict with Iran could pressure parties toward a unity government, echoing past emergency-driven coalitions.

Overall, the data suggest a competitive electoral environment, with heightened turnout among Black, Latino and young voters in Democratic-leaning areas and concerns about depressed Republican participation in states that Trump previously carried by wide margins.