Economists slam Biden’s $1.3trn of student debt relief

Washington| Economists including former US treasury secretary Larry Summers and a senior adviser in the Obama administration have slammed President Joe Biden’s plan to forgive up to $US890 billion ($1.3 trillion) in student debt, saying it will stoke inflation and force spending cuts or tax increases.

The president’s executive action on Wednesday (Thursday AEST) ensures that tens of millions of Americans will benefit from $US10,000 in federal student loan debt forgiveness, and up to $US20,000 for those who received certain government grants.