In an interview with Friday’s edition of Bloomberg’s “Wall Street Week,” the economist, Harvard professor, director of the National Economic Council under President Barack Obama and Treasury Secretary under President Bill Clinton , Larry Summers, said that if politicians want to help solve inflation, one way to do so would be to ask borrowers who “are in better financial shape than at any time in a very long time, to repay their student debts, rather than maintaining the moratorium”.
Summers said, “If politicians outside the Fed want to make a difference on inflation, to the extent that they can, they should cut tariffs, they should let more immigrants into the country, they should reduce regulatory burdens, such as the Jones Act which stipulates that only American vessels can transport crude oil from Texas to the northeast. They should limit the demand by asking borrowers, at a time when they have – are in a better financial position than at any time in a very long time, to pay off their student debt, rather than maintaining the moratorium. These are the things you can do usefully to influence the rate of inflation, and all this abusive talk is a flattering diversion from it all.
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