As inflation rises, Americans become desperate for financial help
As inflation rises, Americans become desperate for financial help

As inflation rises, Americans become desperate for financial help

Image Source: Getty Images

Inflation is on the rise. Will it spur a new round of stimuli?


Key points

  • The consumer price index rose 8.5% in March.
  • As the cost of living becomes more expensive, Americans become more and more desperate for a fourth stimulus payment.

To say that it has become more expensive to operate would be an understatement these days. For months, consumers have spent far more money than usual on buying groceries, covering consumption bills and refilling their cars. And things can still get worse before it gets better.

In March, the consumer price index, which measures changes in the price of consumer goods, rose by 8.5% year-on-year. It represents the biggest leap since 1981.

The extent inflation makes it increasingly difficult for Americans to pay their bills. This is especially true for those who have suffered an economic blow during the pandemic and have not yet recovered.

But will rising inflation give rise to a fourth stimulus check? Here’s what you need to know.

Americans cannot rely on an unexpected wind

Legislators have proposed one gas-specific stimulus this would apply during periods when fuel costs are out of control, as right now. But other than that, there has not been a fourth stimulus control that hits Americans bank accountseven with such high inflation levels.

While it is true that inflation is rising, the US economy is by no means in bad shape from a job perspective. Last week, only 185,000 people submitted new applications for unemployment benefits. Given that new weekly demands were made in the millions in the early stages of the pandemic, it is a huge improvement.

While new unemployment applications rose slightly last week compared to the week before, they recently reached their lowest level since 1968. And based on that alone, a fourth stimulus check is highly unlikely.

This does not mean that the Biden administration will not take steps to try to alleviate the gas crisis. But it is only one specific rising expense that Americans are struggling with now. And the concern is that many Americans will inevitably end up being filled with debt if relief does not come through.

In fact, U.S. consumer debt rose nearly $ 42 billion in February. And part of that increase may be due to more people being forced to charge for it credit card in the absence of enough money to cover their daily expenses.

To cope with higher living costs

Unfortunately, the chances of seeing a fourth stimulus check come out in the short term are very small, despite the fact that so many consumers need help to fight inflation. But those who are struggling to make ends meet should see what relief is available to them.

For example, some states still have rent available, which can be used not only to cover overdue housing payments, but also in some cases a few months’ future payments. And customers struggling with utility bills can contact their providers and see what options they have, or see if their state rental assistance programs also cover utility costs.

In the end, it’s tough economic times for many people. And while a stimulus check could help many households better cope with higher living costs, it is an unlikely solution that will come down the pike.

Top credit cards erase interest rates by the end of 2023

If you have credit card debt, transfer it to this top balance transfer card ensures you an intro APR of 0% by the end of 2023! In addition, you do not pay any annual fee. These are just a few reasons why our experts rate this card as a top choice to help you take control of your debt. Read the full The Ascents review free and apply in just 2 minutes.

Leave a Reply

Your email address will not be published.