On the Money — Student borrowers stare down rising prices

On the Money — Student borrowers stare down rising prices
Written by Publishing Team

Happy Friday and welcome to On The MoneyYour overnight guide to everything that affects your bills, bank account, and bottom line. Sign up here:

Today’s big deal: Millions of Americans will be in trouble to get student loans in May as prices continue to rise. We will also look at President BidenThe Democratic House Democratic Party’s attack on its Republican counterpart in the last quarter of 2021 Putin’s “Brezhnev Doctrine” involving Ukraine may backfire.New Federal Reserve Board Candidates and the Impact of Expiring Children’s Tax Credit.

But first, the senator. Sherrod BrownSherrod Campbell Brown Picks Biden Sarah Blum Raskin And Two Others For Fed Board Cinema, Mansion Limits Biden’s Agenda Fed Chair Brainard faces GOP pressure on climate stances More (D-Ohio) has some complaints about “succession.”

For The Hill, we’re Sylvain Lane, Aris Foley, and Karl Evers Hellstrom. Contact us at or Tweet embedor or Tweet embed and or Tweet embed.

Let’s go to it.

High inflation adds pain to student loan debt

Student loan borrowers will face serious pressure this spring when a federal moratorium on their debt payments ends amid soaring inflation.

Tens of millions of Americans are preparing to resume paying their student loans for the first time since March 2020, after the fastest annual rise in consumer prices since 1982. The costs of food, housing, and other basic goods are rising while millions of Americans feel the crushing weight of student debt.

  • Soaring inflation presents a major political challenge for President Biden and Democrats heading into the midterm elections, and advocates have warned that a lack of action to forgive student loan debt will also follow them down the road.
  • Economists say Biden has little direct ability to solve the tangled problems in the supply chain, employment challenges and pandemic hurdles that drive inflation soaring.
  • The Fed is also preparing to start raising interest rates to cool inflation as soon as possible in March. But even low inflation will still leave cash-strapped borrowers staring at high prices.

When a White House official was asked about rising inflation and its effect on borrowers, he referred to Biden’s plan to cut prices by going after meat manufacturers and directing the largest oil reserve release in history.

“The president knows what kind of pressure he can put on working families, which is why he’s using every tool at his disposal to bring these prices down,” the official told The Hill.

However, these efforts may take months – if not years – to achieve lower prices and only in certain sectors of the economy.

Read more here.

Headed to the Fed?

President Biden on Friday Nominations announced Of the three top Federal Reserve officials, they line up a full list of the Federal Reserve Board of Governors.

Biden officially announced the nominations for former Deputy Treasury Secretary Sarah Bloom Raskin To serve as Vice President of Supervision at the Federal Reserve and Lisa Cook, a professor at Michigan State University, and Philip Jefferson, a professor at Davidson College, to serve on the Fed’s Board of Directors.

  • Raskin, now a professor of law at Duke University, served as Deputy Secretary of the Treasury and a member of the Federal Reserve Board during the Obama administration. She was also Maryland’s commissioner for financial regulation and was considered the front-runner to fill the position of Secretary of the Treasury under Biden.
  • Cook is a widely respected professor of economics who previously served on the White House Council of Economic Advisers President ObamaBarack Hussein Obama 48 Disastrous Hours for Joe Biden Picks Biden Sarah Blum Raskin, Two More Fed Romney Says It’d ‘It Would Be Crazy’ for FNC to Ban Candidates From Committee Debates More. She has held research and leadership positions at Harvard University and Stanford University and has visited appointments to several regional reserve banks. She is currently a member of the Advisory Board of the Federal Reserve Bank of Chicago.
  • Jefferson, also vice president for academic affairs at Davidson, was an economist on the Federal Reserve Board and spent decades in various research and professorship positions. He is also an advisor to the Minneapolis Federal Reserve and a past president of the National Economic Association.

If confirmed by the Senate, the three will join the Board of Governors to oversee its operations, help set US monetary policy and control Fed oversight and regulation of major banks.

sylvan He has more here.

Families lose monthly checks

Millions of families will lose their Child Tax Credit checks starting this weekend

This weekend, millions of families will stop receiving monthly child tax payments for the first time in months after Congress failed to pass the extended credit extension.

As lawmakers struggle to revive talks to renew the expansion, more than 30 million families receiving monthly payments since July will not see another round on Saturday.

re come back. John YarmouthJohn Allen Yarmouth More than 30 million families will lose child tax credit checks starting this weekend On The Trail: Retirement provides a window into the mood of House Democrats, Democrats eager to fill the power vacuum after Pelosi’s exit More (D-Ky.), the chairman of the House Budget Committee, said he hoped the expanded children’s tax credit would remain in a modified version of the plan that could win Manchin’s support. But he admitted that Manchin, who has criticized the benefits structure, “isn’t big on that.”

Aris has more here.

The White House Weighs In

Biden’s top economic advisor is behind the Congressional stock ban

Director of the White House National Economic Council Brian DessBiden’s top advisor expresses support for Congressional stock ban: Inflation offers sharp rise to Biden’s never-ending dilemma: Dealing with Joe Mansion More He said on Friday that banning members of Congress from trading stocks was a “reasonable” idea that could help restore confidence in the government.

His comments, which came during an appearance on CNBC’s “Squawk Box,” add momentum to a growing bipartisan push to prevent lawmakers and their immediate family members from owning or trading securities.

“There is a lot of mistrust and mistrust about how politics works, and about the political process,” Daisy said. “One of the things that we have to do across the board is to restore confidence in our institutions, whether that’s in Congress and the legislature, whether that’s the Federal Reserve and whatever, and whatever we can do to try to restore that faith, I think it’s very logical.”

Lawmakers of both parties have repeatedly introduced bills to end stock trading in Congress that fail to get a vote. They will need to persuade House Speaker Pelosi (D-CA), who said last month that members of Congress should be able to participate in a “free market economy.”

Karl has more here.

good to know

Retail sales fell 1.9 percent from November to December amid an increase in COVID-19 cases, defying economists’ expectations that sales would remain flat. However, in the fourth quarter, retail sales were up 17.1% year over year.

Here are the other things we’re watching:

  • CVS and Walgreens are temporarily closing some of their stores this weekend because so many of their workers have contracted COVID-19.
  • A bipartisan coalition of state attorneys general is moving forward with antitrust investigations into Facebook’s parent company Meta with an appeal in their case based on previous acquisitions and a reported new joint investigation with the federal government regarding the company’s virtual reality unit.
  • President Biden on Friday sought to highlight progress in implementing the $1.2 trillion infrastructure law he signed into law 60 days ago, even as other elements of his legislative agenda have faltered recently.
  • Tesla is said to be delaying the Cybertruck again, pushing its release date to early 2023 after initially planning a production roll out in 2021.

Next week



  • The House Financial Services Subcommittee Holds Hearing on Ending Homelessness at 10 a.m.

That’s it for today. Thank you for reading and checking out The Hill’s Finance page For the latest news and coverage. We’ll see you on Monday.


About the author

Publishing Team

Leave a Comment