Mohamed El-Erian On Biden's Withdrawal From Presidential Race: 'There Is Genuine Uncertainty On How Markets Will - And Should- React To The News'

Renowned economist Mohamed El-Erian has expressed his views on the potential impact of President Joe Biden‘s decision to exit the presidential race on US stock futures.

What Happened: In a post on X on Monday, El-Erian stated that opinions are likely to vary on how the news will influence U.S. stock futures. Some may perceive this as an indication of greater policy uncertainty post the November elections, while others might believe that the markets have already factored in the news. And a few others are likely to view this as a “short-term distraction for markets at best.”

“All this is to say that there is genuine uncertainty on how markets will – AND should – react to the news.”

See Also: Mark Cuban Says Trump’s Re-Election Won’t Impact Bitcoin’s Price, ‘Dogecoin Killer’ Shiba Inu’s Burn Rate

Why It Matters: El-Erian’s comments come in the context of President Biden’s declining economic approval ratings. According to a February 2024 poll, 42% of registered voters preferred Donald Trump over Biden for steering the economy, giving Trump an 11-point lead.

In May, El-Erian highlighted inflation as a major challenge for Biden’s potential reelection, with 58% of voters disapproving of his handling of the economy. This disapproval had increased from 55% the previous month.

Despite Biden’s recent celebration of progress in fighting inflation, economists predict that the Federal Reserve will soon begin cutting interest rates following cooler-than-expected inflation reports.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari