Trump’s Surprise Stimulus Move: Experts Reveal a Secret Third Check in the Works?

During the pandemic, President-elect Donald Trump distributed two stimulus checks to millions of Americans as part of the federal government’s effort to keep consumers financially solvent. Some social media posts now imply that when Trump takes office next year, he may issue another check, which analysts believe is exceedingly unlikely.

TikTok posts hint that Trump may issue another wave of checks, while some X users wonder if they are eligible for a reward. When the COVID-19 health catastrophe shut down the economy in 2020, millions of Americans lost their jobs, raising the unemployment rate to nearly 15% and causing financial hardship for many. When the COVID-19 health catastrophe shut down the economy in 2020, millions of Americans lost their jobs, increasing the unemployment rate to nearly 15% and causing financial hardship for many. Even though many Americans believe the economy is deteriorating, with some citing the impact of the pandemic’s high inflation, analysts argue the United States is still far from the condition in the early 2020s.

“Stimulus checks typically only happen when the economy is in terrible shape, and consumers need a push to start spending again,” said LendingTree senior economist Jacob Channel to CBS MoneyWatch. “That’s not the case in the present.”

Is the economy in bad enough shape for a new stimulus check?

While most Americans rate the economy poorly, analysts believe it is in good shape overall, with steady GDP growth, inflation approaching the Federal Reserve’s 2% annual target, and a jobless rate of 4.1%, close to a 50-year low.

“Despite some pain points and general ‘bad vibes’ expressed by some people, the global economy is currently in astonishingly good shape, and consumer spending is relatively strong,” according to Channel. Nonetheless, many inflation-weary consumers claim they have not yet reaped the benefits of that expansion. The November 5 presidential election was interpreted as a mandate from voters for a new economic course.

Will Trump issue a stimulus check?

While some consumers believe that Trump or Biden were solely responsible for issuing stimulus checks — possibly because Trump’s name appeared on the memo line of the first check — the payments were part of three bills passed by Congress. Then, they sent it to the sitting president for signature. 

Will a stimulus check affect inflation?

With the Federal Reserve still seeking to keep inflation at 2% per year (it was 2.6% last month), officials are likely to be cautious about any steps that could spark inflation. Some economists believe that the rise in federal spending during the pandemic contributed to the conditions that resulted in the highest inflation in 40 years. Since inflation is still such a big concern at the moment, the last thing an adequate government would want to do is further stimulate consumer appetite with stimulus checks because doing so would needlessly possibility of a resurgence in inflation,” Channel said. 

Can the IRS provide stimulus checks in 2024?

The IRS distributed the three rounds of pandemic stimulus payments once Congress authorized them and signed them into law by Trump and Biden. In other words, without congressional authority, the IRS will not issue any stimulus checks in 2024.

There is now no legislation pending for stimulus expenditure, and any legislation is likewise considered extremely unlikely to be enacted before 2025. Instead, experts predict that Trump and Republican senators will focus on tax legislation to extend the tax cuts outlined in his 2017 Tax Cuts and Jobs Act and other budget issues.