Steve Bannon, a former White House chief strategist and prominent MAGA figure, predicted the Republican Party will be engulfed in a “civil war” on Wednesday, Nov. 4, the day after the midterm elections, with lame-duck fights over the debt ceiling, federal spending and AI regulation to follow.
In an interview with the Financial Times, published on Saturday, Bannon, President Donald Trump’s chief strategist in his first term, said the lame-duck session will be “so brutal,” with “monster battles” over the debt ceiling, a large spending bill, defense policy and artificial intelligence. Those battles could have implications for defense contractors, technology stocks and Treasury yields.
Elon Musk’s PAC Backs GOP Campaign
Bannon praised Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s America PAC for its contributions to the party’s campaign in Texas.
Reportedly, Musk was expected to spend between $100 million and $200 million on voter turnout efforts through America PAC. The spending reportedly spans Texas, Maine, Ohio, Alaska and Iowa. Sen. Bernie Sanders (I-Vt.) accused Musk of attempting to “buy” a Texas Senate seat. Musk has relocated the headquarters of Tesla, Space Exploration Technologies Corp. (NASDAQ:SPCX) and X to Texas.
Bannon also said Trump’s super PAC, MAGA Inc., will spend close to $400 million on midterm candidates. He added this “will be an extreme wake-up call for the president . . . I know he didn’t intend to spend any of it”.
Senate Control Hangs In Balance
Polling shows Democrats could take the Senate, though the GOP majority looked secure last year. Bannon believes Republicans can hold it but is “very concerned” about Georgia, North Carolina, Iowa, Kansas and Ohio.
In Texas, Trump-backed Ken Paxton is neck and neck with Democrat James Talarico. Texas last elected a Democrat to the Senate 38 years ago. Bannon said Paxton is “in trouble.”
Bannon called a House majority a “miracle” but “still doable,” adding that turnout will decide it.
Both parties are vying to secure a majority in the Senate in the upcoming elections. On the Democratic side, former President Barack Obama campaigned and urged voters to use the midterm elections as a “circuit breaker” against Trump.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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