Fourth Stimulus Check Update: More Direct Payments Coming Amid Rising Inflation

While many are still holding out hope that a fourth stimulus check will eventually come to fruition, giving Americans even more cash in their wallets, some will be seeing their financial situations improve due to another round of checks from the third stimulus payment. However, as money continues to be given out, some are also warning that inflation is going to lead to some new economic issues.

The IRS distributed another 2.3 million payments beginning on June 9, which included checks to those who had not yet received a stimulus payment as well as “plus-up” adjustments, for those who had a significant reduction in income between their 2019 and 2020 tax returns. According to CBS News, these new batches of payments total $4.2 billion. While most who are eligible for these payments will be ecstatic about receiving an extra influx of cash, the payments are also arriving at a time when inflation is exploding.

In an interview with FOX Business, Verdence CEO Leo Kelly expressed concerns that the trillions being spent on economic stimulus plans—which included the influx of cash Americans have seen three times since the COVID-19 Pandemic began—could cause some problems with inflation continuing to grow, and that Americans may be biting off more than they can chew with the extra funds, especially if they aren’t properly managing their investments.

“I don’t think investors are truly appreciating the magnitude, the staggering magnitude of the amount of capital that’s poured into the system,” he said. “We are addicted to painkillers. Every time there’s a problem, we need a painkiller. And this is a big pill we just swallowed.”

Inflation has led to increased prices in several sectors of the economy in recent weeks-from fuel, food and other areas-and has also led to an increase in prices in wholesale as well. With costs continuing to rise, unemployment benefits ending early in some states and some still feeling the pinch from COVID on their lives, calls for a fourth stimulus check have continued to grow, though, to date, the Biden Administration has not made plans for one in either its second or third recovery plans, which are focused on jobs, infrastructure and education.

Still, while for now there aren’t plans for a new check or direct payment beyond the expanded Child Tax Credit beginning in July, the administration does seem open to considering another check if conditions call for it, with White House Press Secretary Jen Psaki telling reporters earlier in June that the President is willing to hear any ideas that directly help Americans, even if he is currently committed to his other plans.