AOC Criticized For ‘Inapt’ Comparison Between Fed’s Coronavirus Response And Student Loan Debt Relief
Fox News cites Senior Fellow Richard Morrison on Alexandria Ocasio-Cortez’s comments on the coronavirus:
But according to Competitive Enterprise Institute fellow Richard Morrison, Ocasio-Cortez was making a faulty comparison.
“The Fed is lending to banks and strategically purchasing assets, not handing over bailout payments to anyone. AOC’s comparison to student loan payment is inapt. Today’s liquidity injection is not the bank or corporate equivalent of someone’s loans getting paid off by taxpayers,” Morrison said in a statement to Fox News.
“The short-term lending the Fed engages in is quickly repaid by the financial institutions in question, even when, as in this case, the Fed has decided to dramatically scale up certain categories of lending in response to a market downturn,” he said. “Whether this policy is the best one is a different question, but at the very least, American taxpayers should know that it is definitely not the fiscal equivalent of $1.5 trillion in new federal spending.”