The previous stimulus check was made a couple of years ago and since then various discussions have been going on over the issue that another stimulus check should or should not be passed in the coming future. With the ongoing pandemic since the summer of 2020, three stimulus checks have been released to the citizens with the stimulus check of March 2021 being the most recent.
Will Unemployment, GDP, And Inflation Compel For Another Stimulus Check?
Motley Fool suggests that some interesting topics would throw hints on the status of the stimulus check. The previous few years have seen a drastic hike in the prices of everyday necessities. Though items such as gasoline prices have dropped, a warning from the Federal Reserve still looms over the fact that inflation is still not over.
Marking a hike in interest rates, for now, the eighth time since March, the Federal Reserve warned of reaching the appropriate target range. It also states that in any case, if inflation persists in increasing, attention would be drawn to Congress to opt for necessary steps.
A decrease in the unemployment rate has been noticed but might take a reverse if companies continue with their layoff process. The past few months have not even spared multi-million companies like Microsoft, Amazon, Meta, and Google from laying off many employees. Congress would take direct action to save the consequences that can possibly be caused by mass unemployment.
Reports regarding GDP by The Bureau of Economic Analysis submit them once every quarter. What can be considered a recession is when negative growth reports consecutively are submitted. Previously, stimulus check was issued to help with the economy during the recession which leaves the door open for another relief check in any possible case of recession. The economic modeling of October 2022 threw light on the possibility of economic recession in 2023.
