US President Joe Biden’s plan to cancel some of the student loans held by tens of millions of people will ripple through the economy as personal spending and savings change, but no factor will be more closely watched than inflation.
In announcing the plan on Wednesday, the White House signaled that the move would have competing impacts. On the one hand, it would reduce overall household debt and potentially increase purchasing power. On the other hand, it proposes a timetable for relaunching payments suspended for more than two years.
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