Fourth Stimulus Check Update: Recurring Payments Urged By Lawmakers Could Fail

Amid some worries about the economy in 2022, there has been a renewed demand for a fourth stimulus check despite growing inflation fears. For several months, there has been a push from a small group of lawmakers to consider another round of stimulus checks.

While 21 Senate Democrats in March 2021 pushed for a $2,000 monthly stimulus check until the pandemic ends, the American Rescue Plan only approved a one-time direct payment of up to $1,400 for eligible adults and their dependents.

A group of Democrat senators later sent a letter to President Joe Biden, encouraging monthly payments while noting that $1,400 payments would last people less than three months.

Meanwhile, a Change.org petition called on Congress to pass a bill for $2,000 monthly payments that would last until the pandemic ends. It has received more than 3 million signatures.

The moves seem like a long shot. Many experts don’t expect recurring payments, let alone a fourth stimulus check, will happen anytime soon.

The Biden administration has instead focused on infrastructure projects that can get boost the economy and job market.

Experts believe the three stimulus checks that have been distributed have only contributed to inflation. The checks gave Americans extra money, which increased spending on cars, electronics, and furniture.

The additional purchases of goods, along with the strain on the supply chain, resulted in higher inflation.

While acknowledging that reoccurring payments could help struggling families, one economist said monthly stimulus may plunge the economy into disaster.

“They’ll have more money to work with, which could potentially drive inflation further harder and higher, as well as causing more shortages,” said Rob Tennant, professor at Texas A&M Central Texas Economics.

“So, it can create a vicious cycle. It doesn’t mean the suffering of people doesn’t matter; it just means all aspects of this need to be taken into consideration.”

Another expert claimed that as long as no more nationwide stimulus checks are distributed, inflation could moderate this year.

“One cause of inflation has been an explosion of demand driven by federal stimulus,” said Brad McMillan, chief investment officer at Commonwealth Financial Network.

“But that stimulus has now ended," McMillan said. "Yes, we will continue to face inflation and supply problems, but they are moderating and will keep doing so.”

Although a federal stimulus check might not happen, some states are still distributing payments to their residents.