COVID-19 pandemic stimulus checks were needed. During the closure, bills and rent were paid using deposits made in banks.
In total, three payments were made, and many Americans have waited months for a fourth, especially in light of rising prices that have put pressure on their finances.
Things To Consider Before Feds Send New Stimulus Checks
Congress has thus far failed to act, therefore anyone still anticipating a fourth stimulus check in 2023 should monitor the following three variables to determine whether or not a fourth payment is likely.
1. Unemployment
The unemployment rate in the United States has been falling, but there are concerns that this trend will reverse and more corporations would initiate layoffs, especially since computer companies have laid off millions of workers in recent weeks.
If unemployment rises excessively, Congress could potentially grant additional stimulus aid to support the unemployed. During the COVID-19 pandemic, for instance, Congress increased the number of unemployment benefits available to eligible employees and also broadened eligibility requirements.
2. Inflation
Inflation drove up costs last year, leaving many Americans unable to afford the necessities. The Federal Reserve has warned that inflation is far from done, despite evidence that prices are not continuing their parabolic increase at the start of the new year.
In fact, the Federal Reserve hiked interest rates for the eighth time since March on Wednesday, February 1, and warned that further hikes in the (interest rate) target range will be appropriate.
If prices continue to rise, Americans will experience greater financial strain, and Congress may be compelled to pass another stimulus package.
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3. Gross Domestic Product
The Bureau of Economic Analysis produces quarterly statistics on the gross domestic product of the nation (GDP). If there are two-quarters of negative GDP growth, this is typically considered as an indicator of a recession.
In the past, stimulus payments have been used to strengthen the economy during a recession, and this might happen again if the economy deteriorates.
Watching these data will be vital in the approaching year if you’re awaiting additional stimulus money, so keep your eyes peeled for economic news that could signal lawmakers will be driven into delivering more financial support to suffering families.
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