Best Smidcap Ideas: Washington Policy In 2026

Research evidence excerpt

Best Smidcap Ideas: Washington Policy In 2026

TD Cowen

Global Research

June 24, 2026

■WRG Macro Commentary Best Smidcap Ideas: Washington Policy In

TD Cowen Washington Research THE TD COWEN INSIGHT

202 868 5300 ■Affordability focus w/ inflation risk, tariff refunds, constrained Fed & midterms/Iran shaping

washingtonpolicy@tdsecurities.com next 2 years and 2028 runway

Paul Gallant

■Federal policy now fully supports co-location

202 868 5303

paul.gallant@tdsecurities.com ■Window open over the coming quarters for small & mid-cap bank mergers

Chris Krueger ■Unprecedented hospital headwinds are ahead - relief will come - matter of when and to

202 868 5307 what extent.

christopher.krueger@tdsecurities.com

■Courts playing important roles in key TMT deals.

John Miller

202 868 5306

john.p.miller@tdsecurities.com As we did last year, we publish this note at a time when we are near the midway point in the

year. This note covers the assessment by our policy team on:

Roman Schweizer

202 868 5305 ■Macro Outlook = Affordability. Affordability remains the dominant political and market

roman.schweizer@tdsecurities.com lens, with inflation risks skewed to the upside from potential energy shocks and persistent

trade friction. Fed Chair Warsh is likely to prioritize balance sheet tightening vs. rate cuts.

Jaret Seiberg

202 868 5313 Trade policy and geopolitical tensions will drive near-term uncertainty, even as U.S.-China

jaret.seiberg@tdsecurities.com relations remain subdued through midterms. Democrats are positioned to campaign on

cost of living with a plausible House flip (but tougher Senate path), setting up a divided

Molly T. Turco

government focused on oversight, while Iran outcomes and midterm results begin shaping

202 868 5309

the 2028 field.

molly.turco@tdsecurities.com