Will Biden’s student debt plan backfire?

Following the announcement of Joe Biden’s federal student debt plan, the U.S. President is facing questions over whether the move will only increase inflation

On Wednesday, Biden announced his administration will cancel at least $10,000 in federal student debt per borrower, while extending a payment freeze to the end of the year.

However, the move has frustrated some economists, who say it will only fan the flames of America’s 40-year high inflation.

Critics warn lifting student debt will enable borrowers to spend far more over a short period of time, driving up demand and, therefore, prices.

However, others disagree and say the stimulus will have little impact on consumer spending.

At the White House, the press secretary says fiscal responsibility is the President’s top priority.