Despite rising inflation fears, there has been increasing clamour for a fourth stimulus check amid some concerns about the economy in 2022. A tiny group of politicians has been urging Congress to approve another batch of stimulus checks for many months.
While 21 Senate Democrats called for a $2,000 monthly stimulus payment until the epidemic was over in March 2021, the American Rescue Plan only allowed a one-time direct payment of up to $1,400 for qualified individuals and their families.
Later, a number of Democratic senators wrote to President Joe Biden, urging him to make monthly payments and pointing out that $1,400 instalments would only last three months.
Meanwhile, a Change.org petition urged Congress to approve a measure that would provide $2,000 monthly payments until the epidemic is over. More than 3 million people have signed it.
The manoeuvres seem to be a long shot. Many analysts believe recurrent payments, let alone a fourth stimulus check, are unlikely to occur anytime soon.
Instead, the Biden administration has concentrated on infrastructure projects that will help to stimulate the economy and create jobs.
The three stimulus cheques that were given, according to experts, have simply added to inflation. The cheques provided Americans with more funds, allowing them to spend more on automobiles, gadgets, and furnishings.
Inflation rose as a consequence of the increased purchases of commodities and the pressure on the supply chain.
While recurrent payments may assist poor households, one analyst warned that monthly stimulation might send the economy into a tailspin.
“They’ll have more money to deal with, which might push inflation even higher and cause further shortages,” said Rob Tennant, a professor of economics at Texas A&M Central Texas.
“As a result, it has the potential to establish a vicious cycle.” This is not to say that people’s suffering is unimportant; it just means that all parts of the situation must be considered.”
According to another analyst, inflation might decline this year if no additional countrywide stimulus payments are delivered.
“An increase of demand spurred by fiscal stimulus has been one source of inflation,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.
“However, that impetus is now over, “According to McMillan. “Yes, inflation and supply issues will persist, but they are moderating and will continue to do so.”
Despite the fact that a federal stimulus check may not be forthcoming, several states are continuing to distribute payments to their populations.