Fourth Stimulus Check Update: Omicron May Slow Economy's Progress But Will Congress Act?

Concerns about a potential economic slowdown due to the COVID-19 pandemic have only worsened with the rise of the Omicron variant, as major health organizations go on high alert.

Americans continue to navigate the ongoing pandemic with some hoping lingering for a fourth stimulus check.

Hopes for another round of stimulus checks have come from a petition on Change.org. The petition calls for recurring $2,000 payments to adults and $1,000 payments for children. It harkens to a plan proposed by former presidential candidate Andrew Yang.

There are over 2.97 million signatures as of Tuesday. The petition hopes for 3 million signatures.

Could the country fall into economic despair?

Federal Reserve Chairman Jerome Powell told the Senate that the new variant could pose a risk to the economy and could worsen the prospects of an already-uncertain inflation outlook.

“The recent rise in COVID-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell said in prepared remarks to lawmakers, released before his testimony.

“Greater concerns about the virus could reduce people’s willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.”

The Dow Jones Industrial Average on Tuesday dropped 1.86%, while the S&P 500 fell 1.9%. The tech-heavy Nasdaq fell 1.55%.

The Omicron variant has also sent shaken up the World Health Organization and the Centers for Disease Control and Prevention.

The WHO on Monday warned that the new Omicron variant has a “very high” global risk and urged national authorities to step up pandemic relief efforts.

Meanwhile, the CDC strengthened recommendations for the COVID-19 booster shot following the rise of the new variant.

Despite the large push for another round of payments and the increased economic pressure brought by Omicron, a fourth round of stimulus checks probably won't happen. The economy would have to see a sharp decline for the federal government to offer for checks of about $1,400.

While Democrat lawmakers may be open to the idea, Republicans are not. The midterm elections are about 11 months away and Republicans were even reluctant for a next round just after the third round in March.

In April, Sen. Mitch McConnell, R-Ky., told WEVV 44 News, a CBS/Fox affiliate in Evansville, Indiana, dismissed another round of stimulus checks as he lamented Democrats' efforts for infrastructure spending.

"I can't imagine the economy is going to need a fourth round," McConnell said. "But they're putting together this so-called 'infrastructure package,' which is gonna include more borrowed money and big tax increases on the most productive parts of our economy."

State governments are also hesitant on new rounds of payments as many have been cutting financial assistance the past few months.