Stimulus Check Update: No Round 4 Coming Your Way

Stimulus Check
stimulus check

According to reports, the money already handed out through the first three stimulus check, which should total $3,200 per 169 million or so Americans, has been broken down. However, the money has already been spent, millions of Americans are still in debt, and the expansion of the Omicron variation is causing fresh economic headwinds. 

Stimulus Checks Will Be Given By Certain States 

According to the research, a quarter of Americans struggled to pay their household bills in the preceding week, according to a December Census poll. While the economy has improved, the unemployment rate – 4.2 percent – is still higher than the pre-pandemic level of 3.5 percent. According to the report, this statistic translates to almost 2.3 million fewer people working now than before the epidemic.

The omicron increase was brief in most sections of the nation. Not just that, but the pandemic had a different economic impact than expected. In January, 467,000 new jobs were created in the United States. While the unemployment rate increased marginally to 4% the previous month (from 3.9 percent the month before), the total number of jobless Americans fell by nearly 3.7 million just a year ago.

The rise in inflation rates is the major reason for the winding down of the stimulus program. Although the Federal Reserve is known to make slow changes, they are taking drastic measures because they fear high inflation rates may stay constant.

Principal Global Investors’ chief strategist, Seema Shah, in an interview with BBC said that the Federal Reserve has only just realized the growing rates of inflation. As the CPI is nearly at 7%, the Federal Reserve’s decision to accelerate the end of the stimulus program comes as no surprise, she added.

Kenneth Rosen said that if the Federal Reserve could magically stop the program they would stop it entirely. University of California’s Kenneth Rosen said that there is a lot of money rolling through all single asset classes.

The COVID-19 epidemic has caused economic troubles, and government stimulus checks were granted for the neediest families. However, the result for the stimulus check program was not favorable, since it provided money to spend, generating inflation amid a financial collapse.

Biden has been hesitant to approve a fourth round of payments, and it does not appear that such a bill will be considered anytime soon.