PCE inflation report may help Biden, but his post-debate focus is damage control
By Victor Reklaitis
'Great inflation print' except economic reports are getting overshadowed at the moment
Americans' frustration with inflation has weighed on President Joe Biden's re-election campaign, so Friday's encouraging data on prices might be helpful to the Democratic incumbent.
The problem for him is the spotlight at the moment remains on his widely panned performance in Thursday night's debate against presumptive Republican nominee Donald Trump.
"I do not think economic fundamentals or policy matter at all for the president for the coming 72 hours," said Kim Wallace, head of the Washington policy risk team and senior managing director at 22V Research, in an email to MarketWatch.
Wallace said the president faces a "crisis management imperative" over the next 72 hours and "needs statements of support" by day's end from two key Democrats, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
Biden's campaign event in North Carolina on Friday afternoon "must impress everyone, including Trump," and he should be engaged in public events throughout the weekend, added Wallace, a former Obama Treasury official.
The president is slated to take part in a campaign event in Raleigh, N.C., around 12:30 p.m. Eastern, and he's due to make remarks around 4:30 p.m. Eastern in New York City at an opening ceremony for the Stonewall National Monument's visitor center.
A report on Friday morning for the personal consumption expenditures price index showed prices didn't go up in May.
In addition, the 12-month rate of core inflation decelerated to 2.6% from 2.8% and hit the lowest level since March 2021. The PCE index is known as the Federal Reserve's preferred inflation gauge.
U.S. stocks SPX DJIA were gaining Friday following the inflation data.
Now read: Betting markets put Biden's chance of re-election at new low after debate, while Newsom gains
And see: After Biden's debate showing, markets confront chance of a new candidate
Plus: 5 stock-market takeaways as Biden sees 'incredible pressure' to step aside after debate
-Victor Reklaitis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-28-24 1236ET
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