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The soaring cost of food, gasoline and other staples is further complicating a fraught debate among President Biden and his closest advisers over whether to follow through on his campaign pledge to cancel thousands of dollars of student loan debt for tens of millions of people, the New York Times reported. While Mr. Biden has signaled to Democratic lawmakers that he will probably move forward with some form of student loan relief, he is still pressing his team for details about the economic ramifications of wiping out $10,000 of debt for some — or all — of the nation’s 43 million federal student loan recipients. In meetings this spring, Mr. Biden repeatedly asked for more data on whether the move would primarily benefit well-off borrowers from private universities who might not need the help, according to people involved in the process. The country’s 8.6 percent inflation rate, a four-decade high, has added another layer of complexity to the decision: What would it mean for the economy if the government forgives some $321 billion in loans? “You’re talking about millions, possibly billions of dollars that could be spent. You should do it with eyes wide open,” said Cedric Richmond, who stepped down as a senior adviser to Mr. Biden last month. “He wants to make sure that it’s based in equity and it doesn’t exacerbate disparities.” While Mr. Biden has yet to make a decision on student debt cancellation, his aides say he will before the end of August. The White House has been deeply divided over the political and economic effects of loan forgiveness. Some economic advisers have made the case to Mr. Biden that the move might actually relieve inflation, at least a little, if he pairs debt forgiveness to a restart of the interest payments on student loans, which have been paused since early in the pandemic.

The Consumer Financial Protection Bureau (CFPB) unveiled a measure yesterday that would scrutinize excessive credit card fees and demand card issuers disclose more data around revenue and expenses in a bid to stamp out abuses and boost competition, Reuters reported. The review would also assess whether such fees are "reasonable and proportional," the CFPB said in its release. It will also assess the potential deterrent effect of late fees, and the role late fees play in credit card companies’ profitability," the agency said. "Credit card late fees are big revenue generators for card issuers." said CFPB Director Rohit Chopra. "Today's effort is particularly timely since current rules might give companies the incentive to impose big hikes based on inflation," added Chopra, underscoring that the watchdog wants to know how the card issuers determine these fees and whether existing rules are undermining Congressional reforms enacted following the 2007-2009 global financial crisis. Card issuers generally charge a late-payment fee when a customer misses their minimum payment deadline. The current rules contain a legal safe harbor which allows lenders to charge late fees provided they do not exceed a "reasonable and proportional" regulatory cap which is set annually by the CFPB. Banks and credit unions pulled in more than $15 billion in overdraft and related fees in 2019 and $12 billion in late credit card fees in 2020, according to CFPB estimates.

President Joe Biden called on Congress to suspend the federal gasoline tax, a largely symbolic move by an embattled president running out of options to ease pump prices weighing on his party’s political prospects, Bloomberg News reported. “By suspending the 18 cent federal gas tax for the next 90 days, we can bring down the price of gas and give families just a little bit of relief,” Biden said Wednesday at the White House. He said that states, many of which are enjoying budget surpluses thanks in part to federal pandemic stimulus, should also suspend their own gas taxes, and he called on refiners and gasoline retailers to make sure “every penny” of the tax pause goes to consumers. “Your customers, the American people, they need relief now,” Biden said. “Bring down the price you are charging at the pump to reflect the cost you are paying for the product. Do it now, do it today.” Biden also rebutted Republican criticism of his handling of gasoline prices, blaming the recent spike on Russia’s invasion of Ukraine. The average national price for regular unleaded is up about 38% since Russia invaded Ukraine on Feb. 24, according to data from the motor club AAA compiled by Bloomberg.

President Biden is planning to call for a three-month suspension of the federal gasoline and diesel taxes, according to senior administration officials, the Wall Street Journal reported. Mr. Biden and his advisers have been discussing the issue for months in the midst of increasing political pressure to take action to address record-high gas prices. The announcement is expected today, officials said, when Mr. Biden is scheduled to deliver remarks on gas prices at 2 p.m. Eastern Time. A suspension of the 18.4-cents-a-gallon federal gasoline tax and 24.4-cents-a-gallon diesel tax through September would require congressional approval, so a move by Mr. Biden to throw his support behind the effort would be largely symbolic. Lawmakers of both parties have expressed resistance to suspending the tax, a move that would likely need bipartisan support to become law. Some Democrats worry that a suspension of the tax would have a limited effect on prices, with oil companies pocketing much of the savings.

A New York City panel that regulates the rents for roughly one million rent-stabilized apartments yesterday approved the highest increases in almost a decade, after property owners said that they were being pinched by taxes and rising expenses, the New York Times reported. At a raucous meeting at Cooper Union in Manhattan, the Rent Guidelines Board voted 5 to 4 to raise rents on one-year leases by 3.25 percent in rent-stabilized homes, and on two-year leases by 5 percent. Many tenants argued for a rent freeze or rollback, while landlords were seeking even higher increases, but the panel had signaled its intent to support a middle-ground approach at a meeting last month. The increases affect roughly two million New Yorkers. New York City, already one of the most expensive places to live in the nation, has seen the cost of living rise amid a rebound from the worst of the pandemic. Soaring inflation has hit tenants and property owners, and the effect on landlords’ ability to maintain buildings was one of the major factors that the board considered. But the vote also intensified concerns about the shortage of affordable housing and the sustainability of the city’s recovery.

President Biden said Monday that he may make a decision within days on seeking a pause to the federal gasoline tax, as Americans deal with soaring gas prices, the Wall Street Journal reported. Biden told reporters in Rehoboth Beach, Del., that he is considering a gas tax holiday. “I hope to have a decision based on the data I’m looking for by the end of the week,” he said. Gas prices started increasing last year and surged following Russia’s invasion of Ukraine, which disrupted the global oil market. The average cost of a gallon of unleaded fuel in the U.S. hit $4.98 on Monday, according to AAA. That is up from about $3 a year ago. Any suspension in the federal gas tax of 18.4 cents a gallon would require action from Congress. So far, Democratic-led efforts to temporarily pause collecting the tax have failed to gain traction. In the U.S. House and Senate, Republican leaders largely oppose suspending the federal gasoline tax. Senate Minority Leader Mitch McConnell (R-Ky.) has accused Democrats of playing “political games,” noting that any gasoline-tax relief would expire soon after midterm elections.

Mortgage delinquency rates in March fell below the 3% mark, reaching another historic low as a strong labor market and income growth drove down the number of property owners who are late on their mortgage payments, HousingWire.com reported. About 2.7% of all mortgages in the U.S. were delinquent in March, dropping 2.2 percentage points from the 4.9% posted in March 2021, according to CoreLogic‘s latest loan performance report. Other contributing factors to the decline were rising home prices and the resulting equity gains providing alternative options to those who may be coming out of forbearance or facing foreclosures, said CoreLogic’s report. “The share of borrowers in any stage of delinquency was at an all-time low in the first quarter of 2022,” said Molly Boesel, principal economist at CoreLogic. While the share of borrowers in any stage of delinquency was at an all-time low in the first quarter of 2022, Boesel expects distressed sales to rise over the coming year.

U.S. Rep. Bill Foster (D-Ill.) introduced legislation last week in the U.S. House of Representatives that would allow students to take over the student debt that was incurred on their behalf, Financial Regulation News reported. Foster’s Parents PLUS Loan Fairness and Responsibility Act seeks to provide a sensible solution for parents facing multiple financial burdens. “As college costs and economic burdens continue to rise, federal law should allow families to determine financial liability for PLUS loans in a way that accommodates their financial situation,” Foster said. “This legislation would provide a common-sense solution by allowing a child, if they’re willing, to take financial responsibility for the loans that allowed them to go to college.” Specifically, the legislation would allow parents to transfer Parents PLUS loans to the student with the consent of the parent, student, and lender. PLUS loans — which are part of the Federal Direct Student Loan Program — are offered to parents of undergraduate students who are enrolled at least half-time or who are graduate and professional students. However, to qualify for this transfer, the student must meet the credit requirements for the PLUS loan program, and they must be at least six months removed from leaving school. Further, after the transfer is complete, the loan would be eligible for Public Service Loan Forgiveness.