In the wake of President Joe Biden exiting the White House race, Vice President Kamala Harris has swiftly taken the opportunity to shape her own economic narrative, presenting both an opportunity and a potential risk as she positions herself as the likely Democratic presidential nominee.

Harris has chosen to focus on key economic issues such as ending child poverty, boosting labor unions, reducing the costs of healthcare and childcare, and ensuring dignity in retirement. Notably, she has refrained from addressing the issue of inflation, which has plagued Biden's administration, causing rising grocery, gasoline, housing, and auto expenses for Americans.

Instead, Harris is prioritizing her vision for the future, emphasizing a society where everyone has the opportunity to flourish. She reiterated this vision during a speech to the American Federation of Teachers, highlighting her commitment to eradicating child poverty, enabling seniors to retire with dignity, and supporting workers' rights to join unions.

However, Republicans are quick to point fingers at Harris, attributing the inflation woes to her without specifying how she contributed apart from her role as vice president. Senate Minority Leader Mitch McConnell publicly stated that Harris bears responsibility for the past four years of failure. Yet, past and current officials who have worked closely with Harris believe such criticisms will not significantly impact her, as she is seen by many voters as a fresh voice, untainted by the previous administrations.

Now, as the Democratic nominee, it becomes crucial for Harris to clarify her policy positions on economic matters. It is expected that she will align herself with Biden's budget proposal for 2025, including an increase in the corporate tax rate from 21% to 28% as outlined in Trump's 2017 tax overhaul.

Interestingly, Harris's emergence as the Democratic nominee coincides with positive economic news. The Commerce Department reported a 2.8% annual growth rate in the economy for the second quarter, and the measure of inflation, the personal consumption expenditures, eased to an annual rate of 2.5%. Financial markets now anticipate a potential Federal Reserve interest rate cut in September.

Notably, those who have known Harris for years attribute her prosecutorial background in California as shaping her economic policy ideas focused on fairness. They suggest that while she embraces capitalism, she seeks to level the playing field after a perceived imbalance during the Trump administration.

Meanwhile, former President Donald Trump and his running mate, Senator JD Vance, try to portray Harris as more liberal than Biden, particularly when it comes to fossil fuels. They claim that Harris would further restrict their usage in favor of renewable energy sources. Trump went as far as calling her "the most incompetent and far-left vice president in American history."

Nevertheless, the Trump campaign revives Harris's statements from her 2020 presidential nomination run, including her support for banning plastic straws, offshore oil drilling, and fracking, which may impact her standing in Pennsylvania and other swing states.

Republicans also accuse Harris of advocating for tax increases, something that aligns with Biden's budget plan for wealthier households and corporations. However, the Harris campaign clarifies that she does not support a fracking ban, as she repeatedly emphasized during the 2020 vice presidential debate, where she highlighted Biden's position as well.

As the election approaches, the biggest risk for Harris lies in how persistent inflation shapes voters' perception of the economy. Economic models used by financial firms suggest that the odds lean in favor of Trump, with inflation continuing to pose a challenge for the vice president's approval ratings.

Bernard Yaros, an economist at Oxford Economics, stated that he doubts Harris will significantly shift the opinions of swing voters when it comes to the economy. He suggests that she still grapples with the "baggage" associated with overseeing high inflation during her tenure.

While the uncertain road ahead leaves room for unexpected developments, the economic challenges brought by inflation continue to play a critical role in shaping Harris's presidential bid.