12 Oct Stimulus News Update: An Inflation Update Comes out this Week
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Stimulus News Update – Single taxpayers earning less than $75,000 a year and couples filing jointly earning less than $150,000 a year will receive $350 per taxpayer and another $350 if they have any dependents. Thus, a married couple with children could receive up to $1,050.
Stimulus News Update – Key Points
Inflation has been hitting consumers for more than a year.
Later this week, we should get a big update on inflation levels.
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There’s a motive. So many consumers following the Stimulus news Update have been calling for stimulus checks this year. Inflation has made it very difficult to keep up with standard living costs. As a result, many people feel they need a lifeline to avoid depleting their savings and accumulating dozens of credit card debts to stay afloat.
Meanwhile, the Federal Reserve has been raising interest rates in an attempt to slow the pace of inflation. And while he has good intentions in doing so, he has put a burden on consumers who have reached a position where they need to borrow money from credit card balances to keep up with their basic expenses.
This week we should have a critical inflation reading that could determine whether the Fed backs down on its aggressive interest rate hikes or goes ahead with them. And it’s a great ad you won’t want to miss.
Stimulus News Update Will Inflation Readings Be Lower for September?
The inflation rate in August was slightly higher than in July, making the stock market reeling. During its most recent meeting, it also pushed the Fed to implement another 0.75% interest-rate hike.
On October 13, we can expect the September data from the Consumer Price Index (CPI) to be published. This index procedures variation in the price of consumer things.
If the CPI displays an uptick in inflation for September, there is a good chance that the Fed will respond with another violent rate hike. And that could make life even more problematic for cash-strapped consumers forced to rely on credit cards.
On the other hand, if the CPI displays that rise levels were lesser in September than in August, the Fed may not feel forced to implement such a severe rate hike during its next meeting. And that might relieve the borrowers a little bit.
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Could Aggressive Interest Rate Hikes Spur A Recession?
That is the fear among clients and financial experts alike. When plagiarizing becomes more expensive because interest rates rise, consumers tend to spend less.
To be clear, the Fed needs that to happen. It is the only way to close the supply and demand gap causing inflation to soar since late 2021.
But the worry is that consumers could push back demand because of much higher borrowing costs and cut their spending substantially. If that happens, it could trigger a recession and put some people in a position where their jobs and incomes are compromised.
Stimulus News Update – Interestingly, a full-blown recession might motivate lawmakers to pass another round of stimulus – something many people have been desperate for this year. But remember that stimulus checks come into play only when economic situations are poor. And while inflation is making life hard for many people now, at least the labor market is good and strong. If the latter condition changes, it could deal a more devastating blow than inflation has.