The decision has been coming for a few weeks already and Biden has now made it official. There was a sense that he could've stuck in there until the Democratic National Convention in August. But alas, the sense of realism has finally taken over Biden and his camp. This was his statement on Twitter/X:
"My Fellow Americans,
Over the past three and a half years, we have made great progress as a Nation.
Today, America has the strongest economy in the world. We’ve made historic investments in rebuilding our Nation, in lowering prescription drug costs for seniors, and in expanding affordable health care to a record number of Americans. We’ve provided critically needed care to a million veterans exposed to toxic substances. Passed the first gun safety law in 30 years. Appointed the first African American woman to the Supreme Court. And passed the most significant climate legislation in the history of the world. America has never been better positioned to lead than we are today.
I know none of this could have been done without you, the American people. Together, we overcame a once in a century pandemic and the worst economic crisis since the Great Depression. We’ve protected and preserved our Democracy. And we’ve revitalized and strengthened our alliances around the world.
It has been the greatest honor of my life to serve as your President. And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term.
I will speak to the Nation later this week in more detail about my decision.
For now, let me express my deepest gratitude to all those who have worked so hard to see me reelected. I want to thank Vice President Kamala Harris for being an extraordinary partner in all we’ve done. And to the American people for the great faith they have placed in me.
I believe today what I always have: that there is nothing America can’t do – when we do it together. We just have to remember we are the United States of America."
As he drops out, the betting markets have Kamala Harris as the favourite to take over from Biden to challenge Trump. But it might not be a straightforward case as Biden didn't quite endorse Harris directly in his statement above. He will be speaking later on his decision to bow out of the race, so we'll see if he will say anything else then.
Otherwise, we might have to wait until after the Democratic National Convention to have a better sense of who will be facing up against Trump come November.
Adam posted this earlier: How would the bond and FX markets react to Biden dropping out of the race?
Update: Biden has now come out to give an official endorsement for Harris, saying: "Today I want to offer my full support and endorsement for Kamala to be the nominee of our party this year."
Other Democrats can still challenge Harris next month but with Biden's endorsement, it's going to be a tough one. In the bigger picture, Trump is still favourite to win the election. But at least it's not a complete given now, though still a long shot for the Democrats.
