As the pandemic continues, many Americans are getting worried if a fourth stimulus check would be approved. Experts explained that another round of direct Economic Impact Payment seems highly unlikely at this point.
As reported by Go Banking Rates, experts believe that a fourth stimulus check would not arrive this year because political consensus has no will to back up the program. They also pointed out that a stimulus payment can "do more harm than good" to the American economy.
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For reference, the stimulus payments are monetary aid that provided $1,400 to $5,600 depending on eligibility. Families who received the money used it as financial relief for their rental and electricity bills, childcare expenses and other similar payments.
The program officially ended last year. However, many remain hopeful that stimulus checks could still be extended this year to help families combat economic inflation and the growing spread of COVID-19. Experts disagreed with the sentiment.
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According to Anthony Martin, the CEO, and founder of Choice Mutual, "some states are forming their own stimulus money, making it even more unlikely that the federal government will create more stimulus checks," per Go Banking Rates.
This implies that the money that could have been used as budget for the federal stimulus checks has already been distributed via local government programs. For reference, states like California, Georgia, Connecticut, Florida, New York and Tennessee have their own supplemental stimulus programs. Note that while many of their programs took the form of a universal stimulus check, some others are limited to specific occupations like teachers and first responders.
The second big issue with the fourth stimulus check is the number of supporters for the program. Carter Seuthe, the CEO of Credit Summit Payday Loan Consolidation, said that "the current administration has shown little appetite for passing such measures by executive order, and Congress has been dragging its feet on passing major infrastructure spending."
This implies that unless economic conditions worsen, the administration won't make its move.
Lastly, Riley Adams, a licensed CPA and senior financial analyst for Google, said that "the odds of another round of stimulus checks are fairly slim... Injecting more federal stimulus into the economy could stoke the flames of inflation even further."
He emphasized the ongoing economic inflation, which is the highest rate recorded in over 40 years. Simply put, the market has a stressed supply chain, thanks to the crisis with the pandemic. Low supplies mean higher costs, which is why market prices are on the rise.
A stimulus check might help families afford their groceries, but it will not help the market improve its stocks. Overall, experts are at a consensus that the fourth stimulus check is unlikely to get approved this year.
It is worth noting that lawmakers have yet to decline the program officially. Until an announcement is made, Americans are recommended to keep an eye out for updates.
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