Biden’s Debt Relief Plan Would Increase Deficit, Inflation: Daniel Lacalle

The Supreme Court is hearing arguments about President Joe Biden’s student debt relief plan. The chief economist at Tressis, Daniel Lacalle, tells NTD that it would benefit existing borrowers but disadvantage those who take out loans in the future. Furthermore, Lacalle says the relief would increase the deficit “very significantly,” which would lead to a higher risk of inflation. He says concerns that the Federal Reserve will have to raise rates by 50 to 75 basis points to neutralize the effects are conservative.