Are more stimulus checks on the way?

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Last Updated on May 18, 2020 by Mark P.

For millions of Americans, the $1,200 stimulus check many received was just not enough to get by, especially as many states and cities are extending their lockdown requirements from just a few weeks to as far as several more months. This means the need for cash on hand may matter more now than it did even several months ago. With the world’s most booming economy halting even longer, there are very serious discussions about a second wave of stimulus checks coming your way.

So, will it happen? Will there be more stimulus checks going out?

According to Yahoo! Finance, experts from Goldman Sachs are betting hugely on the speculation that while Wall Street might see another crash, they are pretty confident that at least Americans will see an increase in liquidity thanks to another round of government-issued stimulus checks.

“Our forecast assumes one more round of payments similar to what the bill proposes,” said Goldman Sachs stragegist Jan Hatzius to Yahoo on Wednesday, in reference to the proposed $3 trillion relief plan put on the floor by House Democrats earlier this week. In this proposed bill titled the HEROES Act, “a second round of checks would include $1,200 per family member and up to $6,000 per household.

If you remember correctly in regards to the first relief package (the Coronavirus Aid, Relief, and Economic Security) CARES Act, “individuals were eligible for up to $1,200 or $2,400 for married couples. Children under 17 were granted $500.” The HEROES Act would offer dependents “$1,200 per eligible household for up to a maximum of three dependents.”

Now assuming (a big assumption) this new bill gets passed, this would earn a place in legislative history as the “largest relief plan in history.” However, this new relief package is unlikely to get through the GOP controlled Senate without some drastic changes to the original House plan. Yahoo reminds us that the “Senate has downplayed the need for another sizable stimulus package as states reopen,” thus restarting the economic engine the country needs.

However, if you’re a betting person, Goldman is right there with you predicting a scaled-down relief plan passing in the Senate before the end of 2020. “We continue to expect another $1.5 trillion in fiscal measures over the course of 2020-22, with about $550 billion in 2020. Without an obvious forcing event this month, we do not expect Congress to enact the next round of fiscal measures until late June,” Hatzius stated.

If Goldman is right, whatever version of the bill that passes will most likely include more stimulus checks to households, additional state relief, and extended unemployment benefits and employee retention tax credits.