The Biden administration is committed to ensuring that student debtors are not surprised. We’ll also look at the Supreme Court ruling on former President Trump’s tax returns and the impact of inflation on Thanksgiving.
First, take a look at the seven Republicans most likely to challenge Trump for the Republican nomination.
Welcome to On The Money, your nightly guide to everything that affects your bills, bank account, and bottom line. For CNNBreakingNews, we’re Sylvan Lane, Aris Folley, and Karl Evers-Hillstrom. Are you forwarding this newsletter?
Student loan payment has been suspended until June 2023
The Biden administration on Tuesday extended the payment break for pandemic-era federal student loans and interest accrual until June 2023 at the latest, while the government faces legal challenges regarding its debt relief.
“I am confident that our debt relief is legal for students. But it’s on hold because Republican officials want to block it,” President Biden said in a statement. “For this reason, @SecCardona is extending the payment break until June 30, 2023 at the latest, giving the Supreme Court time to hear the case during its current term of office.”
The background: The latest extension until next year gives the Supreme Court time to decide whether it will decide whether to continue the program.
- The payment break will end “no later than June 30, 2023,” Biden said, as payments will resume 60 days after the Department of Education is approved to implement the program or after the lawsuit is settled, which should be done before the end of June, when the Supreme Court term usually ends.
- Loan payments were first suspended in March 2020 under former President Trump at the start of the COVID-19 pandemic to relieve individuals from paying their student loan bills.
Alex Gangitano from CNNBreakingNews has the latest information here.
WE LEAD THE DAY
Supreme Court refuses to protect Trump tax returns from Congress
The Supreme Court on Tuesday rejected an emergency complaint from former President Trump to protect his tax returns from House Democrats, ending a multi-year lawsuit and paving the way for his tax returns to be released.
The decision, which contained no significant disagreement, was a response to an appeal Trump filed with the Supreme Court late last month after a lower court refused to reverse his verdict, in which he required his tax records to be handed over to the House Ways and Means Committee.
- Democrats in the House of Representatives have been looking for the records for years and said they need to look into how the IRS conducts its routine presidential checks, while Trump’s lawyers argued the matter was purely political.
- While the Supreme Court order is a win for House Democrats, it’s unclear how useful it will be to them. It’s not clear how quickly the IRS would hand over the records, and House Republicans are expected to withdraw the motion when they take office in January.
Rebecca Beitsch from CNNBreakingNews explains it here.
Die Thanksgiving-Inflation verschlingt die Budgets
High inflation is affecting the Thanksgiving spread.
According to the Department of Labor’s Consumer Price Index (CPI), food prices rose by almost 11 percent in the 12 months to October, while foods that exclude restaurants were 12.4 percent more expensive compared to the same point last year.
And some Thanksgiving staples are even more expensive thanks to a combination of costly setbacks for farmers and food processors.
- According to the Department of Labor, poultry prices rose by almost 15 percent annually in October, due in part to a recent outbreak of bird flu.
- Prefabricated baked goods, baking mixes, and frozen desserts were
also at least 15 percent more expensive last month than a year ago.
Sylvan explains why here.
Home purchases by investors fall by a record amount in the third quarter
Home purchases from investors fell by a record amount in the third quarter, outpacing the overall decline in home sales across the country.
- A new report from real estate firm Redfin found that companies bought around 65,000 homes in the third quarter of 2022, down 30 percent from the previous year.
- Investor activity fell the most when buying single-family homes and fell by 32.3 percent in the third quarter compared to the previous year.
The drop in investor buying activity represents a drop in home sales driven by high prices and rising mortgage rates as part of a series of Federal Reserve interest rate hikes to raise inflation.
Adam Barnes from CNNBreakingNews has more here.
Good to know
NFL quarterback Tom Brady and NBA star Steph Curry are among a group of celebrities being investigated by a Texas regulator for potential violations of securities laws related to their advertising for the collapsed cryptocurrency exchange FTX.
Joe Rotunda, the enforcement director of the Texas State Securities Board, told Bloomberg in an interview on Monday that the board is reviewing the payments received by Brady, Curry, and others to publicize their support for FTX, their details, and access to private investors.
Other things we’re keeping an eye on:
- The Department of Justice on Tuesday sued five people and 11 companies that were allegedly behind a timeshare fraud scheme in which victims brought in more than $90 million.
- Shareholders of a company that wants to join forces with Trump Media and Technology Group (TMTG) voted on Tuesday to extend the deadline to merge with the parent company of former President Trump’s social media site Truth Social.
That’s it for today. Thanks for reading, and check out the CNNBreakingNews financial page for the latest news and coverage. I’ll see you tomorrow.