{"id":69387,"date":"2020-09-17T17:43:29","date_gmt":"2020-09-17T14:43:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-how-stimulus-checks-could-cost-americans-in-the-long-run\/"},"modified":"2020-09-17T17:43:29","modified_gmt":"2020-09-17T14:43:29","slug":"heres-how-stimulus-checks-could-cost-americans-in-the-long-run","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-how-stimulus-checks-could-cost-americans-in-the-long-run\/","title":{"rendered":"#Here’s how stimulus checks could cost Americans in the long run"},"content":{"rendered":"

“#Here’s how stimulus checks could cost Americans in the long run<\/strong>”
\n<\/p>\n

\n Massive federal spending meant to blunt the coronavirus\u2019s economic impact could have long-term costs, experts say \u2014 meaning those stimulus checks might not be free money after all.<\/p>\n

Congress\u2019s unprecedented stimulus measures coupled with the Federal Reserve\u2019s aggressive efforts to shore up the economy could drive up inflation in the coming years, leaving Americans with less purchasing power over time, according to reports.<\/p>\n

Lawmakers have app<\/a>roved about $4 trillion in coronavirus-related stimulus spending, according to the Committee for a Responsible Federal Budget<\/a>, while the Fed has injected trillions more into the financial markets and cut interest rates to near zero.<\/p>\n

Those efforts have been aimed at warding off deflation, a phenomenon in which consumers reduce their spending and prices for goods and services fall, financial educator Sahil Bloom told CNBC.<\/a><\/p>\n

But that deflation could turn into inflation \u2014 which drives up consumer prices and reduces the power of the dollar \u2014 if the government spending frenzy continues \u201cunchecked,\u201d according to Bloom.<\/p>\n

\u201cIf we remain in an environment of record-breaking deficit spending alongside zero interest rates, it is certainly one possible outcome here that we would see a world of rising inflation and high unemployment,\u201d Bloom, a vice president at Altamont Capital Partners, told CNBC.<\/p>\n

The likelihood of another large-scale spending bill to follow up the $2.2 trillion CARES Act combined with the Fed\u2019s whatever-it-takes approach to monetary policy is likely to speed up inflation going forward, Morgan Stanley economists reportedly contend.<\/p>\n

\u201cAs the rebound in the economic indicators continue to gather pace, we think we have left behind the worst of the disinflationary pressures and that reflation is already under way,\u201d the bank\u2019s economists wrote in a note to clients last month, according to MarketWatch<\/a>.<\/p>\n

The Fed recently shifted its policy to allow for higher inflation, but the move was aimed at helping the economy add jobs for as long as possible. The central bank signaled Wednesday that it would keep interest rates near zero until inflation is on pace to \u201cmoderately exceed\u201d its target rate of 2 percent.<\/p>\n

While Congress has been deadlocked for weeks on a new fiscal stimulus package \u2014 which could include another round of $1,200 direct payments to taxpayers \u2014 economists say more spending is needed to keep the economy on the path toward recovery from its record collapse in the spring.<\/p>\n

\u201cEven in the case of the CARES 2.0, notwithstanding the split between policy makers on the size of the package, both sides of the aisle have continued to express the need for supporting the economy, which in turn has meant that the final size of the package is likely to be bigger (at around US$1.5-US$2 trillion, compared to initial expectations of US$1 trillion), not smaller,\u201d the Morgan Stanley economists reportedly said.<\/p>\n

With Post wires<\/em>\n <\/div>\n

\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Here’s how stimulus checks could cost Americans in the long run” Massive federal spending meant to blunt the coronavirus\u2019s economic impact could have long-term costs, experts say \u2014 meaning those stimulus checks might not be free money after all. Congress\u2019s unprecedented stimulus measures coupled with the Federal Reserve\u2019s aggressive efforts to shore up the economy…<\/p>\n","protected":false},"author":1,"featured_media":69388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2020\/09\/coronavirus-stimulus-check-1.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[70716,1545,5069,70865,70551],"class_list":["post-69387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-9-17-20","tag-coronavirus","tag-economy","tag-government-spending","tag-inflation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/69387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=69387"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/69387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/69388"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=69387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=69387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=69387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}