President Biden is closer than ever to announcing an executive order to forgive certain student loan debt. We will also look at the latest inflation figures, difficulties in seizing Russian assets and new sanctions against North Korea.
But first, the photos of the week.
welcome to money, your nightly guide to everything related to your bills, bank account, and bottom line. For The Hill, we are Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Did someone forward this newsletter to you? Subscribe here.
Programming Note: On the Money will not be released on Monday, May 30, Memorial Day. Enjoy the holiday weekend!
Biden focused on forgiving $10,000 in student loans
President Biden is poised to make a decision on student loan debt forgiveness, with the president and his team focused on writing off $10,000 per borrower, with some potential caveats.
Multiple reports have indicated that Biden is planning to use the weekend start ceremonies to announce a student debt forgiveness, with the Washington Post reporting that the timing was changed following a school shooting in Uvalde, Utah. Texas, which had killed 19 people. A White House official, however, disputed that this is the case.
- White House officials have warned that no decision has been finalized as Biden continues to weigh his options.
- The president is scheduled to speak at the Naval Academy commencement ceremony on Friday and at the University of Delaware commencement ceremony on Saturday.
Multiple sources told The Hill in late April that Biden was considering canceling at least $10,000 in student debt, and it appears the White House appears to have agreed on that number even as it works through potential limits on the beneficiaries of loan cancellation.
The Hill’s Brett Samuels has the latest here.
Prices rose at a slightly slower pace in April, new data shows
Consumer prices rose at slower annual and monthly rates in April, according to data released Friday by the Bureau of Economic Analysis.
- The Personal Consumption Expenditure (PCE) price index, the Federal Reserve’s favorite gauge of inflation, rose 6.3% in the 12 months to April, against an annual inflation rate 6.6% in March.
- The index rose 0.2% in April alone, well below March’s 0.9% monthly gain.
- Excluding food and energy prices, which tend to be more volatile, the PCE price index rose 4.9% annually in April and 0.3% between March and April.
The data was broadly in line with economists’ expectations.
“It’s a small step in the right direction, but inflation remains comfortably above the Fed’s target. The good news for the Fed is that most measures of long-term inflation expectations remain consistent with the Fed’s target,” Ryan Sweet, senior director of Moody’s Analytics, wrote in an analysis Friday.
Sylvan breaks it down here.
US fights own secrecy laws to pursue Russian assets
Some of the biggest hurdles for investigators seeking Russian assets amid the country’s three-month invasion of Ukraine are the legal anonymity mechanisms that are built into the US tax and financial code. .
The most powerful of these rules is the designation known as beneficial owner, which allows asset owners to not be recorded on legal documents as long as they appoint a third party to act on their behalf.
- This means that beneficial ownership laws can allow billions of dollars of illicit assets to remain invisible to financial investigators.
- It’s also one of the main reasons the US now ranks above Switzerland and the Cayman Islands as the world’s most financially secretive country, according to a list released this month. ci by the Tax Justice Network, a non-profit organization based in the UK.
Tobias Burns of The Hill has more here.
US sanctions North Korea in response to latest missile launches
The Treasury Department will freeze the assets of two North Korean banks, an individual and a trading company working with the country’s rocketry ministry after the May 24 launch of an intercontinental ballistic missile and two more short range by North Korea.
The sanctions target supporters of the country’s weapons of mass destruction and ballistic missile programs, as well as foreign financial institutions that “knowingly provided significant financial services” to the North Korean government, Brian Nelson, head of the Terrorism and Financial Intelligence Department of the Treasury. , said in a statement.
- The ownership of the import-export company Air Koryo as well as that of an individual named Jong Yong Nam have been frozen by order of the Treasury for their role in the attempted purchase of “transistors and hydraulic system components” for the North Korean rocket industry.
- The order, administered by the Treasury’s Office of Foreign Assets Control, “freezes the assets of persons engaged in [WMD] proliferation activities and their support networks.
Check out more here from Tobias Burns of The Hill.
Good to know
Soaring gas prices are forcing Americans to brace for a pricey Memorial Day weekend, the traditional start of summer when vacation-related travel typically spikes.
Despite the increases — last week every state had gas prices above $4 for the first time — AAA predicts three-day weekend travel will return to near pre-pandemic levels.
Here’s what else we’ve got our eyes on:
- A group of Senate Democrats has called on Apple and Google to ban apps available in their app stores from using data mining practices to target people seeking abortion services in letters sent to the giants technology Friday.
- Delta Air Lines said on Thursday it would cut 100 flights from its daily schedule, mostly in the United States and Latin America, as airline activity continues to suffer from high oil prices and supply chain disruptions. .
That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. We’ll see you next week.
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