Much of that momentum will soon backtrack. Goldman Sachs has forecast that the Supreme Court’s decision would drive the Personal Consumer Expenditures Index (PCE) down by two-tenths of a percent. In other words, consumers will cut back their expenses, which means less cash flow to stimulate the economy.
In fact, according to a recent survey from Morgan Stanley ahead of the Supreme Court decision, 37 percent of borrowers do not think “they could make regular student loan payments without … adjusting spending in other areas,” the report said while 34 percent of respondents said they will not be able to make the payments at all.
