Hot discussions in Washington about Biden’s possible withdrawal from the presidential race
Hot discussions in Washington about the possible refusal of President Joe Biden to seek re-election have rattled Wall Street, where traders are actively shifting their funds into dollars, treasury bonds, and other assets. This was reported by the Telegram channel «First Business».
Market Reaction
The portfolio reorganization began last week immediately after the catastrophic debates between Biden and Trump. These debates intensified resistance to the possibility that the 81-year-old Democrat might decide to run for president again. Soon after, trading activity increased the most in the bond market, where the yield on 10-year treasury bonds jumped by 20 basis points over the following days.
Uncertainty
There is now a significant increase in circumstances that Biden may decide to withdraw his intention to run. Investment circles are already considering response plans in the event of such a scenario during the upcoming holidays, including Independence Day on July 4.
«The markets have already reassessed the probability of being elected after the debates, so the latest news only deepened this instability,» commented Gennady Goldberg, head of US rate strategy at TD Securities in New York.
It is worth noting that Joe Biden appealed to wealthy donors at a party in the Hamptons in New York.
