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Increased Prices May Result in Further Stimulus Payments, According to the Fourth Stimulus Check Update
While the US economy has recovered quite well from the blow caused by the COVID-19 epidemic, the typical American finds it difficult to comprehend how with skyrocketing prices and now even greater costs as a result of the Russian-Ukrainian war. However, some are beginning to notice and are calling for additional financial support now—though it will likely be a long wait for another federal stimulus check.
The most recent unpleasant price hike seen by Americans occurred at the petrol pump, which now averages $4.32 per gallon nationwide, according to AAA. California now has the highest gas prices in the US, with an average of $5.73 per gallon, while Hawaii, Nevada, Oregon, Washington, Alaska, Arizona, and Illinois all have an average of more than $4.50 per gallon. At the moment, the only states with an average price of less than $4.00 a gallon are Oklahoma, Arkansas, Colorado, Kansas, Missouri, Nebraska, Iowa, South Dakota, and North Dakota.
With prices rising at such a rapid pace, additional requests for a stimulus check or comparable payment from the federal government are being made. Mark Wolfe, executive director of the National Energy Assistance Directors’ Association, asked the government in a column for CNN to provide another check to low- and moderate-income families, arguing that they are unlikely to continue keeping up with escalating prices. Citing a Moody’s Analytics analysis that predicted monthly costs had climbed by $276 due to inflation, and that surging fuel prices might push those costs above $300 per month.
Wolfe indicated in his letter that a direct payment through the IRS should be restricted to those earning less than 8% of the national median income, which would benefit those in greatest need while keeping the program’s cost modest. He proposes that Congress authorize a single $1,100 payment per household to cover four months’ worth of pricing, with an option for President Biden to offer additional checks at a later date if prices continued to rise.
While the administration has said that there is always the possibility of bringing another wave of relief to Americans, it does not appear that anything will happen soon. Additionally, experts have expressed concern that another round of stimulus checks may be damaging. As prior payments contributed to the rise in inflation prices.
“Additional federal stimulus might feed the flames of inflation even more,” Riley Adams, a certified CPA and senior financial analyst at Google, told Yahoo! News in December. “With more revenue available to consumers, consumer demand may increase, further stressing an already stressed supply chain.”