The American economy is bouncing back as the nation learns to live with Covid-19. People are returning to work again as the unemployment rate trends downward towards pandemic lows. Manufacturing output is up and the demand for housing is outpacing supply.
In the 4th quarter, U.S. Gross Domestic Product (GDP) increased by 6%. With economic indicators showing strength, many people are wondering whether there will be another stimulus check.
Read on for the latest update on stimulus checks. Explore recent news on economic stimulus checks and the likelihood of financial relief from the Biden Administration.
Infrastructure Investment and Jobs Act
The first thing to look at is the Infrastructure Investment and Jobs Act. President Biden signed this bill into law in November 2021.
While the main focus of the bill was infrastructure, there were certain elements of the bill designed to help the American people. For example, this law extended the Employee Retention Credit (ERC). The ERC was designed to help businesses keep their staff on payroll.
Eligible businesses include those that were forced to shut their doors due to Covid-related government orders. This ERC FAQ list is helpful in learning more about the legislation. Nonetheless, there were no provisions for a stimulus check in this bill.
Build Back Better
While the infrastructure bill helped American employees, it did not provide direct payouts from the Department of Treasury. The stimulus checks that were issued by the Trump and Biden Administrations early in the pandemic are likely not returning.
However, there are discussions taking place to keep monthly Child Tax Credit (CTC) payments coming. The Biden Administration expanded the CTC and authorized the Treasury Department to direct deposit monthly payments to Americans.
The existing CTC expansion expired at the end of 2021. As part of the Build Back Better agenda, the Biden Administration is working to extend the new CTC through the end of 2022.
At the moment, the bill is stalled in the U.S. Senate. Moderate Democratic Senators Joe Manchin and Kyrsten Sinema are balking at the total price tag. With unanimous Republican opposition, the Build Back Better legislation cannot pass without Manchin and Sinema’s support.
There is a chance that another stimulus check will be necessary if the economy starts to tank. With the omicron variant ripping through the United States, there is a chance that the economy falters.
Inflation is another risk factor for the economy. The price of goods is rising faster than wages. Fuel and grocery prices are taking a significant bite out of the average person’s monthly income.
The U.S. Federal Reserve is likely to raise interest rates in response. This will make it more expensive for Americans to finance major items like vehicles and homes. If these issues continue, Congress may consider direct payment stimulus checks in the future.
Likelihood of 4th Stimulus Checks
You should not get your hopes up at the moment for another stimulus check. The economy is on stable footing and growing again. People are back to work and the country is learning to live with Covid.
There are risk factors like inflation that could derail the economy. This would increase the odds of another stimulus check. If you enjoyed this article about the likelihood of more stimulus checks, take a look at our blog for more great content.