The midterms won’t ease borrowing costs. Here’s what CFOs should do now

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Good morning. What do the U.S. midterm election results mean for finance leaders? With Democrats winning control of both chambers of Congress, companies could face greater scrutiny of issues such as AI investment and data center development. But the broader financing challenges facing finance chiefs extend beyond the shifting political landscape. “CFOs should go into 2027 expecting sustained higher borrowing costs,” Josh Putnam, EY-Parthenon’s global and Americas corporate finance leader, told me. Financing conditions are also likely to remain volatile, regardless of which party controls Congress. Growing deficits, strong capital demand, inflation volatility, and policy uncertainty are putting pressure on long-term rates, Putnam said, making disciplined capital allocation, debt management, and investment decisions increasingly important for finance chiefs. His advice is to stress-test investment hurdles, evaluate debt maturities, and protect balance-sheet flexibility. Companies must…

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