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I will speak to the Nation later this week in more detail about my decision.
Now that its actually happened, you may be wondering how the change could impact your wallet.
Now that Biden has withdrawn from reelection, will we see immediate effects on the economy?
Also see how our economy performed under each president.
What Causes Inflation?
Essentially, inflation takes place if demand for something exceeds the supply.
An increase in the money supply also contributes to inflation, according to anarticlein Harvard Business Review.
The Fed can raise interest rates so that it costs more to borrow money.
Businesses have a harder time getting credit, since the cost to borrow money is higher.
The stock market may fall.
But what does all this have to do with the 2024 presidential race and Bidens exit?
Political Uncertainty and the Stock Market
First, Biden withdrawing from the race will bringincreased political uncertainty.
Will the president be well enough to complete his term this year?
During times of political uncertainty, people may not spend as much.
They might save for an uncertain future.
This could slow inflation.
Theres a possibility that now that we know Biden is out, some political uncertainty has resolved.
This could bring more consumer confidence.
That would make cash more liquid and increase spending which could drive inflation higher.
This puts more money in the hands of 35,000 Americans which, in turn, could spark inflation.
Whether or not anew democratic candidatecan defeat Trump on Election Day will affect student loan debt policies moving forward.
If student loan debt forgiveness continues, it could be a small driver for inflation.
Biden, in turn, blamed Trump for a flat economy.
Dawn Allcot contributed to the reporting for this article.
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