The Supreme Court’s Anti-Inflationary Student Loan Decision
The Supreme Court just gave a boost to the Federal Reserve’s efforts to tame inflation.
The high court on Friday struck down President Joe Biden’s scheme to forgive nearly half a trillion of student debt. Combined with the recently announced October end of the pandemic pause on payments, putting these debts back on the balance sheets of the household sector could substantially reduce consumer spending, especially in the services sector where inflation has been stubbornly persistent and threatening to rise.
Researchers at the Federal Reserve Bank of New York calculated that roughly $440 billion of federal…