In the CNN Newsroom on Tuesday, Mark Goldwein, senior vice chair and senior political director of the Committee on the Responsible Federal Budget, said that eliminating student loan debt and extending the pause in loan payments would eliminate any deficit reduction under the Inflation Reduction Act. and will likely “do more to boost inflation through debt reduction than any reduction in inflation under the Inflation Reduction Act”. And it “makes things even harder for the Fed, which means it risks putting us in a recession to contain inflation.”
“So the Inflation Reduction Act will save about $300 billion in the first ten years. If we cancel the $10,000 loan and extend the pause by a few months, we’ll get roughly the same in terms of new value. Thus, all deficit reduction will be invalid. At the same time, we will do more to increase inflation through debt reduction rather than reducing inflation under the Inflation Reduction Act.”
He later added: “[I]This does not mean that inflation will increase from 8% to 9%. We will fight to bring inflation down to 2% or 3% where it really needs to be. That will make the Fed’s job even more difficult, which means that there will be a higher risk of putting us into recession to control inflation.”
Source: Breitbart
