As President Biden faces mounting calls for him to drop out of the 2024 presidential race, AGF Investments chief US policy strategist Greg Valliere joins Catalysts to discuss the president's future in the race and what could happen if he stays on the ticket.

Valliere explains that the question around Biden's status as the Democratic presidential nominee could continue until the Democratic National Convention in mid-August. However, that doesn't mean the calls for him to step down will subside: "If Biden makes another gaffe or says something that upsets people, at some point he's going to have to go. So, I'm not positive that he is going to make it."

He notes that Democrats are in disarray over the possibility of not just another Trump presidency but the potential to lose a majority in Congress and governorships across the nation. He states, "That would be a bloodbath for the Democrats, and that's a plausible scenario if he [Biden] is still on the ticket." Because of these high stakes, Valliere believes that there is a solid chance that vice president Kamala Harris could take the reins as the Democratic nominee.

Valliere warns that if Trump is elected, his economic policies would likely add to inflation. As the Federal Reserve continues its fight to curb inflation, he explains that the tension between Trump and Fed Chair Powell "would not be well received by the markets."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl