Key Democrats urge Biden to step aside

Several key Democrats privately urged President Biden to step aside as concerns grow over his reelection campaign.

By Ahmed Azzam | @3zzamous | 8 July 2024

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  • Key Democrats urge Biden to step aside

  • ECB's Knot rules out July rate cut

  • BoE's Haskel advocates holding rates

Several influential congressional Democrats privately urged President Joe Biden to step aside as the party's nominee for the upcoming presidential election, sources said on Sunday. This comes as Biden enters a crucial week for his wavering reelection campaign.

The latest call for a change at the top includes prominent Democratic leaders from House committees, signaling growing concern within the party following Biden's faltering performance in last month's debate against former President Donald Trump.

Among those expressing their views are Representatives Jerrold Nadler and Joe Morelle of New York, Adam Smith of Washington, and Mark Takano of California. According to sources familiar with the discussions, these members voiced their opinions during a private virtual call on Sunday afternoon organized by House Minority Leader Hakeem Jeffries. In total, nine House Democrats have now called for Biden to step aside.

ECB's Knot dismisses July rate cut

European Central Bank (ECB) Governing Council member Klaas Knot ruled out another rate cut in July. In an interview with Handelsblatt, Knot stated, "I don’t see a case for another rate cut in July." He highlighted that the next ECB meeting to consider rate adjustments will be in September. Knot expressed confidence in the ECB's progress in reducing inflation, projecting that the 2% target will be achieved by late 2025.

BoE's Haskel recommends holding rates

Bank of England (BoE) Monetary Policy Committee (MPC) member Jonathan Haskel suggested maintaining current interest rates due to a tight labor market. In a speech, Haskel noted that inflation would depend on the "interaction of a tight labor market and second-round effects as previous inflation works its way through the wage-price system."

Haskel emphasized that the MPC is closely monitoring labor market conditions and underlying inflation indicators, particularly in the services sector. He expressed concerns about the labor market, stating, "The labor market continues to be tight, and I worry it is still impaired. I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably."