In the light of the current situation, it is clearly evident that the citizens of America are going through a tough time. This is not only because of the rising cost of living because of inflation but also of the war situation between Ukraine and Russia where America declared several sanctions against Russia. The majority of the citizens do not have appropriate savings because they have depleted them during the pandemic and some never had any savings.
Present Situation Do Not Call For A Stimulus Check
To save themselves from such a grave situation, the people are waiting for the fourth round of stimulus checks. However, if such a proposal is granted, it will indicate a period of recession. However, the current situation is not bad despite inflation harming the economy. Many analysts believe that inflation is a healthy sign and is good for the economy in some way no matter how much it negatively impacts cash-strapped customers.
As per sources, the market of labor in the U.S. is quite strong which can be proved by the data that approximately 11.27 million opportunities for jobs opened up till February. However, the bond market warned about a recession after analyzing all the factors as it happened before. It will be portrayed by a yield curve that will be inverted for the Treasury bonds of the U.S.
It is known for a fact that bonds which are for the long term offer higher return rates as compared to bonds for the short-term as the investors of long-term are ready to take more risks. Thus, a loud and clear instruction is given to the people that a fourth stimulus check is not necessary till now.
The good news is that the gig economy of America is filled with job opportunities that must be utilized by the people. However, if the situation deteriorates further, and the price of gas goes up, even more, a fourth stimulus check is bound to come.
