Although inflation rates have straight out dipped for the seventh time this month, over a year since January, the index of consumer prices has found a significant increase of 0.5% over the span of December till January. Considering the given situation of inflation rates the fall is coming way slower than anticipated by the Federal Reserve.
Stimulus Checks Might Dampen The Inflation More, Says Critics
Most U.S. citizens can be seen struggling to provide with the basic necessities of daily lives, urging the government to take action and consider another round of stimulus checks this year to provide the financial aid needed.
After the introduction of three Economic Impact Payments (EIP) which were issued by the Internal Revenue Service to eligible American residents. In most cases, individual states widely stepped in to use their surplus budget funds on providing additional relief in the forms of stimulus checks and rebates on tax refunds for recipients amidst the persistent heat of high inflation.
According to GO Banking ratings reported previously, 62% of U.S. citizens polled for financial aid from stimulus checks in 2023. However, the federal government is adamant to make any immediate plans for the issuance of stimulus checks, some critics have argued against refund checks as they may exacerbate the already inflationary pressures.
Although most stimulus supporters argue that these inflation checks are highly likely to cause any difference as such critics claim to be, it’s just a matter of time before inflation skyrocketed the charts if decided to flood the country with cash. Assistant professor in Business Law, Nicholas B. Creel, coming from State University and Georgia College speakers to Forbes, denotes that the current ongoing inflation is getting driven by issues in supplies and gas prices. Relief checks are widely focused on services and goods doing no favor to aggregate demand.