Multiple news outlets on Friday reported that the Biden administration has recently mulled over a new stimulus check plan of sending Americans rebate cards to help offset the escalated price of gasoline.
The Washington Post wrote that senior White House aides have recently revisited a plan to send gas rebate cards to U.S. households after the administration decided against the move months earlier. Fox Business also reported an unnamed official said the Biden administration was considering the rebate cards, though the Post said there are issues holding up the plan.
One sticking point is that officials are reportedly concerned that consumers would use the cards for purchases for items other than gas. The other is that recent shortages in the chip industry may create an obstacle in physically producing the cards.
CNN also cited an official close to the matter as saying that administering the cards and speculation about how the money would be spent are the main obstacles currently preventing the plan from being greenlit. There is also reportedly thought that Republicans in Congress would not sign off on such a stimulus plan.
Stimulus Checks Are A Major Factor Behind Inflation
Another issue with stimulus checks is that they have been cited as one of the contributing factors to the current soaring inflation. Financial experts have blamed an influx of stimulus cash for causing an imbalance in supply and demand because the amount of goods available does not currently meet the desires of Americans looking to spend more.
In an attempt to better balance the supply and demand ratio, the Federal Reserve on Wednesday announced its largest interest rate hike in 28 years. This move was done to make consumers spend less because of the higher rates. Americans having more stimulus money to spend could potentially work against this logic.