Rep. Alexandria Ocasio-Cortez (D-N.Y.) was caught spreading misinformation amid the coronavirus to seemingly push her far-left agenda on scholar loans.
After the inventory market crashed to its worst fall since 1987 on Thursday, the Federal Reserve introduced it will inject $1.5 trillion in capital into the inventory market in an effort to offset coronavirus-related financial disruptions.
In response, Ocasio-Cortez wrote on Twitter, “FYI, the quantity that the Fed simply injected nearly covers all scholar mortgage debt within the US. There may be completely NO excuse for not pausing scholar debt collections, planning for mortgage &lease aid, and many others. We have to take care of working folks as a lot as we take care of the inventory market.”
Brad Polumbo on the Washington Examiner defined why Ocasio-Cortez’s response quantities to “disinformation.”
That is ignorance to the purpose of disinformation, frankly.
What Ocasio-Cortez is suggesting is that the Federal Reserve is someway spending $1.5 trillion in authorities funds and that comparable ranges of spending could possibly be used to cancel all scholar debt in the US. However that is false, and fully distorts the motion the central financial institution is taking.
Brookings Establishment fellow and New York Instances author Justin Wolfers (an economist whose credentials do not precisely scream right-wing hack) known as any such comparability “horses**t,” mentioning that “the Fed’s quick time period loans value us nothing after they’re all repaid the subsequent day.”
Certainly, as Nationwide Overview reported, the Fed didn’t minimize a test to the banks — as Ocasio-Cortez implied — however fairly engaged in “short-term transactions with banks to make sure monetary stability.”
Ocasio-Cortez — who holds an economics and worldwide relations diploma from Boston College — advocates canceling all scholar mortgage debt.