Happy Tuesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
THE BIG DEAL—Schumer, Warren call on Biden to extend student loan pause and wipe out $50K per borrower: Senate Majority Leader Charles SchumerChuck SchumerBiden discusses agenda with Schumer, Pelosi ahead of pivotal week CEOs urge Congress to raise debt limit or risk 'avoidable crisis' If .5 trillion 'infrastructure' bill fails, it's bye-bye for an increasingly unpopular Biden MORE (D-N.Y.), Sen. Elizabeth WarrenElizabeth WarrenThe Trojan Horse of protectionism Federal Reserve officials' stock trading sparks ethics review Manchin keeps Washington guessing on what he wants MORE (D-Mass.) and Rep. Ayanna PressleyAyanna PressleyHaitians stuck in Texas extend Biden's immigration woes Advocates 'in utter disbelief' after Biden resumes Haitian repatriations Democratic bill would force Fed to defund fossil fuels MORE (D-Mass.) on Tuesday called on President BidenJoe BidenCapitol fencing starts coming down after 'Justice for J6' rally Senate parliamentarian nixes Democrats' immigration plan Biden pushes back at Democrats on taxes MORE to extend the pause on federal student loan payments and wipe out $50,000 in debt per borrower.
- Schumer, Warren and Pressley have been boosting pressure on Biden to offer sweeping student loan forgiveness since his election last year.
- But the progressive leaders said Tuesday that Biden has an urgent responsibility to act quickly with federal protections set to expire at the end of September.
“These people live with a sword hanging over their heads. And every day that goes by that sword draws a little closer,” Warren said. “This is a matter of economic justice. It is a matter of racial justice. The president of the United States can remove this sword. The president can prevent this pain.”
The background: Roughly 43 million Americans with federal student loans have been allowed to forgo payments since March 2020, when former President TrumpDonald TrumpCapitol fencing starts coming down after 'Justice for J6' rally Netanyahu suggests Biden fell asleep in meeting with Israeli PM Aides try to keep Biden away from unscripted events or long interviews, book claims MORE signed an order pausing debt payments and interest accrual. Biden has extended that pause twice since taking office, but has not said whether he will do so again before Sept. 30.
“To make borrowers repay their debts now would be unfair, would be harsh, and in many instances would be cruel. People were thrown off their stride by COVID. Give them a chance to recover,” Schumer said.
The majority leader didn’t specify how long the pause should be extended, but said Biden should “wait until at least spring” to restart payments.
LEADING THE DAY
IMF estimates 6 percent global growth this year: The International Monetary Fund (IMF) on Tuesday said that it projects the global economy will grow 6 percent this year.
The top-line estimate is the same as the IMF's April projection, but reflects the fact that the IMF has upgraded its forecast for advanced economies, such as the United States, while it has lowered its forecast for emerging markets and developing countries.
"Economies are diverging even further, influenced by differences in the pace of vaccine rollout and policy support," the IMF wrote in a report. "However, smooth and durable recoveries are not assured even in places where infections are seemingly under control."
- The IMF projected that overall, the global economy will grow this year after it contracted by 3.2 percent in 2020 as a result of the coronavirus pandemic.
- The IMF estimated that advanced economies' output will increase by 5.6 percent in 2021, up from its April estimate of 5.1 percent but reduced its estimate for 2021 growth in emerging markets and developing economies from 6.7 percent in April to 6.3 percent.
The Hill’s Naomi Jagoda breaks it down here.
Biden, Sinema meet as infrastructure talks hit rough patch: President Biden and Sen. Kyrsten SinemaKyrsten SinemaBiden pushes back at Democrats on taxes Yarmuth and Clyburn suggest .5T package may be slimmed Of partisan fights and follies, or why Democrats should follow Manchin, not Sanders MORE (D-Ariz.) met at the White House on Tuesday to discuss the stalled bipartisan infrastructure framework.
White House Press Secretary Jen PsakiJen PsakiWhite House debates vaccines for air travel France's Macron to speak to Biden about submarine deal Why does Biden's vaccine mandate not apply to welfare recipients and others? MORE said that Biden and Sinema met Tuesday morning and the two are “optimistic about the path forward.” She said both are aware that the “trickiest discussions” can come at the end of negotiations.
The sit-down signals a desire by Biden to get directly involved in the negotiations as lawmakers and White House officials try to finalize details of a $1.2 trillion infrastructure deal amid ongoing disagreements.
The state of play:
- Negotiators are racing to resolve the outstanding differences that have cropped up since Biden and a group of bipartisan senators announced an agreement on the contours of the proposal at the end of last month.
- Psaki later told reporters that the White House is “encouraged” by Tuesday comments from Sen. Mitt RomneyWillard (Mitt) Mitt RomneyFive questions and answers about the debt ceiling fight Warren, Daines introduce bill honoring 13 killed in Kabul attack Overnight On The Money — Presented by Wells Fargo — GOP senator: It's 'foolish' to buy Treasury bonds MORE (R-Utah) expressing optimism about the negotiations.
- The group of bipartisan lawmakers met Monday evening to address disagreements after the framework appeared to be on shaky ground. Lawmakers are now working through issues related to funding for public transit, broadband, highways and bridges, and how to pay for the package.
The Hill’s Morgan Chalfant updates us here.
ON TAP TOMORROW:
- The House Financial Services Committee holds a markup of pending legislation at 10 a.m.
- The Senate Finance Committee holds a hearing on building on bipartisan retirement legislation at 10 a.m.
- The Federal Open Market Committee announces its July monetary policy decision at 2 p.m. followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m.
- The Senate Judiciary Committee holds a hearing on the U.S. food supply chain at 2:30 p.m.
GOOD TO KNOW
- Consumer confidence continued to rise in July and is now nearing pre-pandemic levels amid a boost in economic activity following loosened coronavirus restrictions.
- Sens. Patrick LeahyPatrick Joseph LeahyPhotos of the Week: Renewable energy, gymnast testimonies and a Met Gala dress Senators denounce protest staged outside home of Justice Kavanaugh Al Franken on another Senate run: 'I'm keeping my options open' MORE (D-Vt.) and Richard ShelbyRichard Craig ShelbyCrypto debate set to return in force Press: Why is Mo Brooks still in the House? Eshoo urges Pelosi to amend infrastructure bill's 'problematic' crypto regulation language MORE (R-Ala.), the top members of the Appropriations Committee, reached a roughly $2 billion deal on Tuesday to provide new funding to the Capitol Police, after warning bells that they were heading toward a funding cliff sparked by the Jan. 6 attack.
- U.S. home prices grew at a record annual pace in May, rising almost 17 percent from 2020 amid tight supply and rabid demand, according to data released Tuesday.
ODDS AND ENDS
- The Biden administration is set to issue vehicle mileage standards that will first restore Obama-era standards and then exceed them, with a goal of 40 percent of U.S. drivers using electric vehicles by 2030, The Associated Press reported.
- A coalition of more than 100 business leaders on Monday penned a letter to congressional leaders, urging them to pass the infrastructure bill that was agreed to by the White House and a bipartisan group of Capitol Hill negotiators.