Kamala Harris Overruled Federal Reserve’s Janet Yellen on Student Loan Handouts

Kamala Harris Overruled Federal Reserve's Janet Yellen on Student Loan Handouts

Kamala Harris Secretly OVERRULED Federal Reserve

(RepublicanJournal.org) – In August, President Joe Biden announced his administration would forgive, in certain cases, up to $20,000 per person in student debt. There has been bipartisan controversy over the plan, and even high-profile Democrats have expressed reservations about it. A report from The New York Times highlighted just how strong the internal opposition to the plan was and how Vice President Kamala Harris’ backing was instrumental in overcoming it.

Janet Yellen’s Objections to Student Debt Relief

Treasury Secretary Janet Yellen was one of the most senior detractors of the debt-relief idea. She pointed to the fact the Federal Reserve was already struggling against ballooning prices in all sectors of the economy, opining that additional federal spending would make this even more difficult.

First Lady Jill Biden, who has previously backed initiatives to lessen the financial burden on third-level students, was also unsure about this specific policy. She made no public statements in favor of her husband’s executive action.

Republican Critics

Less surprising were the GOP lawmakers who came out against President Biden’s debt relief plan. Senate Minority Leader Mitch McConnell (R-KY) led the charge in this regard, releasing a statement that slammed the plan as a “slap in the face” to Americans who had paid off their student loans in full or had never taken any out in the first place. He highlighted the fact wealthier Americans are very likely to benefit the most from the program, and that the payments could exacerbate our ongoing issues with price inflation.

Senator Ted Cruz (R-TX) was even more scathing in his criticism. On an episode of his “Verdict With Ted Cruz” podcast, the Texas legislator implied Biden was purposefully timing the move. The senator felt a larger strategy could be at play to gather votes from unmotivated college graduates with high levels of outstanding debt and poor employment prospects.

Kamala Harris to the Rescue

Vice President Kamala Harris was apparently unmoved by any of these issues. The vice president was reportedly one of the biggest backers of student debt forgiveness in the administration. The Times story revealed she instructed her staff to draw up reports addressing the biggest concerns the president had about the scheme, such as the worry that his executive authority was not sufficient to erase loans without congressional approval. This was a well-known potential issue, with House Speaker Nancy Pelosi (D-CA) stating last year that it would be the final nail in the coffin for any college debt relief.

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