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President Joe Biden has officially announced his decision to step down from running for re-election in 2024, endorsing his Vice President Kamala Harris as a potential Democratic nominee. Evercore Chairman Emeritus Ralph Schlosstein joins Market Domination to discuss the potential market impact.
Schlosstein praises Biden as "an excellent president," and while acknowledging the difficulty of the decision, he believes it's "best for the country and for the Democratic party." He asserts that Harris is "incredibly skilled" and the right choice for the nomination.
Regarding economic policies under Harris, Schlosstein notes, "I don't want to be partisan here, but the list of accomplishments of the Biden-Harris administration is pretty long." He cites infrastructure improvements, bringing tech jobs back to the United States, and lowering drug prices among their achievements— things that Trump talked about but were unable to achieve during his tenure as president.
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"In some respects, there's more agreement than any Democrat or Republican would let you believe about what needs to happen to make our economy strong, and the Biden-Harris government has a pretty good record of getting legislation through on a bipartisan basis," Schlosstein adds.
On inflation, Schlosstein emphasizes that the Harris campaign must address its impact on Americans, particularly middle and low-income households. He suggests they will need to communicate "that there's a major effort underway to bring the cost of living down and strengthen wages."
"In all honesty, it's not fair to blame President Trump for the unemployment that resulted from Covid, and it's equally not fair to blame President Biden and Vice President Harris for the inflation that occurred as a result of COVID," Schlosstein told Yahoo Finance.
Regarding potential Fed rate cuts, Schlosstein believes a September reduction would be reasonable. He notes that "the risk to activity and employment" is now greater than that of inflation, which has been "trending in the right direction," making it "a good time" to return to normalization.
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This post was written by Angel Smith