Wall Street Scouts Biden Replacements After Debate Dud
In the aftermath of President Biden's shaky debate performance against Donald Trump, a high-stakes game of speculation is unfolding across Wall Street and corporate America. The burning question: If Biden does ultimately step aside, who could seamlessly take his place atop the Democratic ticket without jolting markets into turmoil?
From the obvious choice of Vice President Kamala Harris to the more business-friendly credentials of Commerce Secretary Gina Raimondo, finance professionals are closely studying the field of potential replacements. Their aim is identifying a successor that could maintain economic stability and policy continuity through 2025 and beyond.
"I think you have to start with the vice president," said Brian Gardner of Stifel, acknowledging Harris's built-in advantages as the current No. 2. "Then I think it's a very open field."
Harris has been making the rounds trying to win over CEOs and the business community. She recently hosted events with titans like JPMorgan Chase's Jamie Dimon and leaders from the U.S. Chamber of Commerce. The vice president is clearly positioning herself as someone who can work across the aisle with corporate interests.
Sponsor Ad
Better Than Oil Stocks
The best way to profit from energy is NOT a stock...
Rather, it's this little-known alternative investment.
CLICK HERE TO FIND OUT MORE
Another name gaining traction in boardrooms is Raimondo, whose partnerships with industry leaders on key Biden initiatives like the CHIPS Act have enhanced her standing. Renaissance Macro's Neil Dutta bluntly assessed, "A lot of businesses like her."
Steve Pavlick of the same firm explained the appeal, "She spends a lot of time taking the temperature of the business community, which is a big part of her role."
Raimondo's private sector background and finance career prior to politics boosts her business-friendly profile. While progressives like Elizabeth Warren voice concerns about her coziness with corporate America, her pro-growth leanings could make her an inviting choice for Wall Street.
Of course, Harris and Raimondo aren't the only names being floated across trading floors and C-suites. A range of up-and-coming governors like Gavin Newsom of California, Gretchen Whitmer of Michigan, Josh Shapiro of Pennsylvania and J.B. Pritzker of Illinois have supporters eyeing their national upside.
As Stifel's Gardner acknowledged, "It's a very open field" to potentially replace Biden in these critical next two years of his first term.
According to Eurasia Group's Ian Bremmer, the core criteria is finding "someone able to maintain coherent economic policymaking and messaging" to keep markets calm and the recovery on track.
That task is made harder, Bremmer notes, by the "untested" nature of most potential successors "on the national stage." But forging economic stability is the prime directive being weighed on Wall Street.
For their part, Biden and his inner circle remain adamant that the president has no plans to step aside. He spent the weekend at Camp David consulting with family who are encouraging him to "fight on" as Harris put it.
The president also hit the campaign trail hard in recent days, delivering a string of fiery speeches aimed at erasing concerns about his stamina and clearing up any doubts about his determination to run again.
However, the persistent chatter around potential successors underscores the jitters last week's performance sparked among business leaders heavily invested in administration policies holding steady. While Biden insists he's committed, Wall Street is already gaming out contingencies should a changing of the Democratic guard take place.
In these volatile times, one thing is certain - finance titans want an assuring hand on the economic tiller through '24 and beyond. The early auditions are just beginning in case Biden's grip.