* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, June 6, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

    Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

    Shows to Watch – The Advocate

    Must-See Shows You Can’t Miss!

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    ‘Sinners,’ starring Michael B. Jordan, is now streaming on Prime Video – About Amazon

    Experience the Thrills of ‘Sinners’ Starring Michael B. Jordan – Now Streaming on Prime Video!

    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Micron Technology (NASDAQ:MU) Stock Price Expected to Rise, UBS Group Analyst Says – MarketBeat

    UBS Analyst Predicts Surge in Micron Technology Stock Price!

    Domo to Participate in the D.A. Davidson Technology Summit – Business Wire

    Domo Set to Shine at the D.A. Davidson Technology Summit!

    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

    Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

    Shows to Watch – The Advocate

    Must-See Shows You Can’t Miss!

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    ‘Sinners,’ starring Michael B. Jordan, is now streaming on Prime Video – About Amazon

    Experience the Thrills of ‘Sinners’ Starring Michael B. Jordan – Now Streaming on Prime Video!

    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Micron Technology (NASDAQ:MU) Stock Price Expected to Rise, UBS Group Analyst Says – MarketBeat

    UBS Analyst Predicts Surge in Micron Technology Stock Price!

    Domo to Participate in the D.A. Davidson Technology Summit – Business Wire

    Domo Set to Shine at the D.A. Davidson Technology Summit!

    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Without Student-Loan Relief, US Consumers Face Another Headwind

June 30, 2023
in Business
Without Student-Loan Relief, US Consumers Face Another Headwind
Share on FacebookShare on Twitter

Without Student-Loan Relief, US Consumers Face Another Headwind
&copy Bloomberg. A worker counts U.S. dollar banknotes at a currency exchange office in Jakarta, Indonesia, on Wednesday, March 2, 2022. The dollar is rising against virtually every peer as fallout from the sanctions levied against Russia supercharge demand for the world’s reserve currency. Photographer: Dimas Ardian/Bloomberg

(Bloomberg) — The US Supreme Court’s ruling throwing out President Joe Biden’s student-loan relief plan will likely further dent consumer spending at a time when the main engine of the economy is already stalling.

The decision to overturn the forgiveness program, which would have canceled as much as $20,000 in student debt for certain federal borrowers, won’t have a major impact at the macroeconomic level by itself, according to economists. But it will add to the financial strain households are increasingly facing this year.

“For impacted borrowers, this is indeed a setback that will limit their capacity to spend, and at the margin could add to the headwinds confronting consumer spending,” said Tim Quinlan, a senior economist at Wells Fargo (NYSE:).

The broader impact on the economy will come this summer, when more than 40 million Americans resume student-loan payments, following a three-year pause aimed at alleviating the weight of almost $1.8 trillion in student debt.

Morgan Stanley (NYSE:) economists anticipate 90% of the funding for those repayments will come from lower consumer spending instead of savings. They see personal consumption expenditures and overall gross domestic product ending the year about 0.1% lower than if student-loan payments remained frozen.

Even before Friday’s ruling, consumer spending had essentially stalled in recent months as Americans pulled back on purchases of goods. The weight of rising prices and worsening credit conditions is leading many households to tighten belts, with more consumers turning to credit cards to support spending.

Read More: US Consumers Lose Steam, Setting Economy Up for Sharp (OTC:) Slowdown

The justices, voting 6-3 along ideological lines, sided with six Republican-led states that sued to challenge the program, on the grounds that it exceeds the president’s authority. It would have cost $400 billion over 30 years by one estimate.

‘Unthinkable’

Biden called the Supreme Court decision “unthinkable” on Twitter, adding that “this fight isn’t over.” He’s expected to announce new steps to protect student-loan borrowers in an address to the nation later Friday.

Student loan payments were paused in March 2020 as part of President Donald Trump’s bid to stem the economic damage from the coronavirus pandemic. The moratorium has since been extended multiple times, and expires Aug. 29.

The average monthly student loan payment prior to the pandemic was $393, according to the Federal Reserve. Collectively, those payments translate to about 0.6% of personal income and 0.8% of monthly personal consumption expenditures, according to Thomas Simons, an economist at Jefferies.

That’s similar to the magnitude of the tax increases associated with the 2013 fiscal cliff, “which was followed by a noticeable slowdown in consumption,” Simons said in a note earlier this year.

What Bloomberg Economics Says…

“The Supreme Court’s decision to toss out President Biden’s student debt relief plan will subtract from already cooling household spending power and so also lower inflation. Based on analysis from last year, when the plan was announced, we expect a 0.2 percentage-point drag on headline CPI over the next year, relative to the level that would have prevailed had the Biden plan gone into effect.”

— Anna Wong, economist

To read the full note, click here

Student loan payments are increasingly on the minds of investors, and the topic came up on several recent earnings calls and in interviews with company executives.

“We are closely watching emerging challenges to consumer spending and sentiment, such as the end of fiscal stimulus and the resumption of student loan payments,” Walgreens Chief Executive Officer Rosalind Brewer said on the company’s June 27 earnings call.

The decision to cancel the student-debt forgiveness program is “bad news for retail,” according to Neil Saunders, managing director at consulting firm GlobalData.

“The student loan forgiveness program and the pause on repayments have provided a very nice fillip to the retail sector and have helped boost growth during some challenging times,” Saunders said in an emailed statement. “Now that both policies are on the way out, the sector will feel something of a chill and this will start to hit just before the holiday season gears up.”

While debt-strapped households will be affected, the majority of borrowers with outstanding loans do not owe large amounts, Wells Fargo economists said Monday in a note. As of the first quarter, more than half had loans of $20,000 or less and only 7%, or about 3 million borrowers, owed $100,000 or more, the bank said.

“This will be a moderate headwind for consumer spending rather than a backbreaking event macroeconomically,” Tobin Marcus, Evercore ISI’s senior US policy and politics strategist, wrote Friday in a note following the Supreme Court decision.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/without-studentloan-relief-us-consumers-face-another-headwind-3118049

Tags: businessStudent-LoanWithout
Previous Post

Fed’s Goolsbee Says More Data Needed to Determine Next Interest Rate Move

Next Post

Biden condemns Supreme Court decision on student loans, to unveil new action

India could become third largest economy in the world this year: Borge Brende – MSN

India Poised to Become the World’s Third Largest Economy This Year!

June 6, 2025
9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

June 6, 2025
Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

June 6, 2025
Graphics: China’s ecological, environmental quality keeps improving steadily – news.cgtn.com

Graphics: China’s ecological, environmental quality keeps improving steadily – news.cgtn.com

June 5, 2025
The Forgotten History (and Slippery Science) of Canola Oil – Eater

The Forgotten History (and Slippery Science) of Canola Oil – Eater

June 5, 2025

The White House Gutted Science Funding. Now It Wants to ‘Correct’ Research. – The New York Times

June 5, 2025
Celsius targets active lifestyles in brand’s largest campaign to date – Marketing Dive

Celsius Unleashes Its Boldest Campaign Yet to Energize Active Lifestyles!

June 5, 2025
Here Are The WFDF World Under-24 Ultimate Championships Pools – Ultiworld

Exciting Matchups Ahead: Discover the Pools for the WFDF World Under-24 Ultimate Championships!

June 5, 2025
Iowa GOP Chair responds to report ranking Iowa as state with worst economy – KCRG

Iowa GOP Chair responds to report ranking Iowa as state with worst economy – KCRG

June 5, 2025
Shows to Watch – The Advocate

Must-See Shows You Can’t Miss!

June 5, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (669)
  • Economy (684)
  • Entertainment (21,590)
  • General (15,266)
  • Health (9,725)
  • Lifestyle (686)
  • News (22,149)
  • People (684)
  • Politics (691)
  • Science (15,901)
  • Sports (21,187)
  • Technology (15,669)
  • World (669)

Recent News

India could become third largest economy in the world this year: Borge Brende – MSN

India Poised to Become the World’s Third Largest Economy This Year!

June 6, 2025
9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

June 6, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version