There has been a continuous discussion on the probability of recession in the last few weeks. Taking into consideration the record-high inflation the nation is experiencing; it isn’t easy to forecast where the economy is moving.
And with no signs of 4th stimulus checks, the low and moderate-income households are dejected. The Federal Reserve has increased its standard interest rates by three-fourths of a percentage which is the highest raise following the year 1994.
The nation was getting back to normal while the economy started to boost as the third stimulus check was announced in March last year. Towards quarters 3 and 4 of 2021, the economy witnessed a boost, however, the record high inflation hampered it all.
Despite No Announcement of 4th Stimulus Checks, Federal Reserve Steps Forward to Offset Inflation
Since 2020, the prices of gasoline prices have almost doubled along with inflation in prices of other essential products; the Federal Reserve introduced its biggest broadside against inflation in mid-June. As a result, the benchmark interest rates were increased by three-fourths of a percentage.
Jerome Powell, the Chairman of the Fed, confirmed that meeting by meeting, more steps will be taken.
In the coming weeks, a stronger rise in the rate can be expected by the country to counter the high inflation.
Economic Activity Boosts Steadily
As stated by the Federal Reserve, after edging down in Quarter 1 of this year, a boost has been seen in the economic activity. With the increase in employment opportunities in recent weeks, the unemployment rate has experienced a decline.
However, even after this, inflation remained at its peak and the disparity in demand and supply is reflected. This crisis has been associated with the stimulus checks by a lot of economists, especially the March 2021 President Biden-signed third stimulus check or Economic Impact Payment.
A lot of people (low and moderate sections) felt relieved with such an amount of money during the pandemic since they were able to meet their necessities with ease. In fact, this amount also helped many of them to settle their debts, to save money so that they can invest some in stocks.
This money also increased demands since individuals started to switch to goods from services. However, the disruption caused to production and supply disruption due to the COVID-19 outbreak resulted in a supply crisis, eventually leading to a price rise. With increasing gasoline prices, the price of essential daily items also shot up.
Can We Expect a 4th Stimulus Checks in Such Difficult Times?
In spite of the fact that such tough times call for a 4th Stimulus Checks. Congress isn’t convinced of the need for the same.
However, Congressman and the American citizens have taken some sustainable but since months, it has become clear that so far, expecting a 4th stimulus check, advanced unemployment payments, and enhanced tax credit stimulus checks are futile.
Further, President Biden has been forced since the Senate is divided in the middle and two of his party senators are also continuously opposing the steps to send the fourth stimulus checks to Americans.
Many states have come up with their own stimulus checks. States that have put emphasis on sending new checks to their citizens or have already approved one, including Maine (among the first states to take such a step), California, New Mexico, New York, Hawaii, Georgia, Illinois, and Delaware among several others.
New Mexicans Entitled to Rebate Payment
States may grant rebate payments of up to $1,500 to New Mexicans, for households and a half for those who file individually.
Those who have filed their tax returns for 2021 are entitled to get the rebate payment. Residents can be entitled to get a rebate stimulus check of $250 in June, whereas the next rebate stimulus check of $250 will be sent in August. The check for the month of July of a similar amount will be granted on the basis of their income.
For those families or household heads who are eligible, the rebate payments of up to $500 may be granted in June and August, and the next payment of $500 in July, however, will be associated with the Adjusted Gross Income this time. The day you get the payments will be based on when you have filed your income tax returns for 2021.
May 31, 2022, was the last date for getting the relief payment of $500 in the first round. Although the citizens still have time to file their state income tax returns. Those who don’t get their stimulus checks this year will be entitled to the same next year after submitting their income tax returns for 2022 prior to May 31 next year.
There are a lot of Americans still expecting fourth stimulus checks but it isn’t on the horizon as of yet.
So, it is clear that as of now there is no sign of getting a 4th Stimulus Check. Let us know what are your views on the 4th Stimulus Checks, stay tuned to our website for more updates.