The White House announced plans on Wednesday to forgive $10k in student loan debt for Americans “earning less than $125,000 per year” and an addition $10k for those who received Pell grants. Industry experts anticipate that the debt relief plan “will almost certainly face legal challenges,” making any ultimate relief still “uncertain.” The proposal would also make changes to the student loan repayment system, including creating a new, lower-level 5% of discretionary income payment cap for some borrowers - NYTimes and Bloomberg and WSJ and MarketWatch and Marketplace
Early reaction on what the plan could mean for inflation concerns here in the States - NYTimes and Bloomberg
And since we’re talking rising prices . . . . Though supply chain bottlenecks and labor shortages have added to the trouble, new research from the NY Fed, Harvard, and the University of Maryland found that “surging consumer demand ultimately did more to drive up prices in the last two years.” All told, that demand was responsible for “roughly 60 percent of the inflation in the United States between 2019 and 2021” - NYTimes
More market tiptoeing ahead of tomorrow’s big Jackson Hole address from Fed Chair Powell - Bloomberg and NYTimes and WSJ and MarketWatch and Marketplace
California is expected later today to ban the sale of new gas-powered cars in the state by 2035, a “groundbreaking move that could have major effects on the effort to fight climate change and accelerate a global transition toward electric vehicles” - NYTimes
Wall Street banking secrecy culture, meet Gen Z, which knows not the meaning of oversharing. Good luck to both of you - Bloomberg
Twitter execs are “push[ing] back” against what they’re calling the “’false’ narrative being created around a former executive’s allegations about the company’s security practices” a day after Peiter Zatko’s bombshell SEC complaint against the social media company was made public. Twitter CEO Parag Agrawal called Zatko’s allegations “foundationally, technically and historically inaccurate” - NYTimes and WSJ
Troubled fitness company Peloton is partnering with Amazon to sell its fitness equipment and apparel on the e-commerce giant, a “move intended to increase distribution of its products as the company struggles with weak demand and a sagging stock price” - WSJ
Talk about spear-phishing on steroids. A group of hackers have reportedly “carried out a scam on representatives of several cryptocurrency projects by creating a deepfake hologram of a senior Binance executive that was good enough to deceive some tech-savvy people on the other end of Zoom calls.” Whoa – Law360
It’s back, baby. The Great Minnesota Get Together kicks off today in Falcon Heights after a couple very strange years of half-measured efforts. Let’s start it off right with some iconic, HOF-worthy culinary efforts - StarTribune
Stay safe,
MDR
The Robins Kaplan Financial Daily Dose features top stories and latest news headlines in financial markets, banking, securities and technology topics.
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