B --- Supreme Court loan forgiveness decision will lock-in fiscal stability
Ben Koltun, 23 (6/1/2023; “The Debt Ceiling Aftermath: 5 Key Takeaways For Markets”; Forbes; https://www.forbes.com/sites/benkoltun/2023/06/01/the-debt-ceiling-aftermath-5-key-takeaways-for-markets/?sh=44d2fd3c3e1b ) //LVL
Indirectly, just raising the debt ceiling will require the Treasury to replenish its accounts that were nearly exhausted by issuing hundreds of billions of dollars in debt. According to a Politico report, this could further constrict bank lending by increasing competition for bank deposits and limiting the amount of bank reserves at the Fed. Then there's the Supreme Court that could do some fiscal heavy lifting. There will soon be a decision on Biden's executive action on forgiving tens of thousands in student loans. A recent CBO score on a congressional disapproval resolution trying to overturn this measure estimated direct spending would decrease by $320 billion this year, well above the direct impact from the FRA.