2022 is starting with a COVID surge and high inflation. Could that mean more stimulus checks? – USA TODAY

Maurie Backman| The Motley Fool

Fed's Powell: Inflation is a major threat to jobs

Chair Jerome Powell acknowledged Tuesday that high inflation has emerged as a serious threat to the Federal Reserve's goal of helping put more Americans back to work and that the Fed will raise rates more than it now plans if needed. (Jan. 11)

AP

Many Americans were disappointed to see 2021 come to an end without receiving a fourth stimulus check in their bank accounts. But will a new year mean a new windfall to look forward to?

Right now, there's no indication that lawmakers are looking to send out another stimulus check. But that doesn't mean we should definitively write one off. Here's why we may or may not see another stimulus payment come in.

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We're starting off 2022 with a surge of COVID-19 cases, fueled by the highly transmissible omicron variant. Health experts are saying that cases could peter off by late January. But if that doesn't happen, and the outbreak persists, we may be in for months of disruptions.

That scenario could force businesses to shut down and layoffs to ensue. If that were to happen, and the economy were to decline, then it could make the case for another stimulus payment.

Record inflation: Consumer prices jump 7% in 2021 to highest rate in 39 years

It's true that the U.S. is deep in the throes of a major COVID-19 outbreak one that threatens to overwhelm hospital systems, force schools into remote learning, and impact supply chains. But the silver lining is that omicron is said to result in milder illness than its predecessors, which means it may not be as disruptive.

Furthermore, the CDC recently updated its guidelines to shorten the length of quarantine for those diagnosed with COVID-19. That could mean fewer workplace disruptions and closures.

All of that would be a good thing for our economy. And speaking of the economy, it continues to improve. In December, the national jobless rate dropped to 3.9%, the lowest level since the start of the pandemic. Additionally, the labor market is loaded with jobs right now, so much so that many companies are raising wages in an effort to attract talent. This is a very different scenario than the one that presented in March 2021, when the most recent stimulus check was approved.

Finally, lawmakers aren't looking to impose massive shutdowns to combat the current COVID-19 surge like they did early on in the pandemic. That alone could prevent a massive wave of layoffs.

Powell says high inflation poses major threat to job market: Commentsraise possibility of faster rate increases

The idea of not getting another stimulus check may be disappointing, especially at a time when inflation is rampant and everything seems to cost more. But you can still take steps to boost your income.

First, research salary data to see if you're being paid a fair wage where you work. If not, you can either fight for a raise or dust off your resume and seek out a new employment opportunity. Or if you're looking for extra work, the gig economy is still very much alive, which means you have a chance to take on a side hustle for extra money.

You can also put yourself on a stricter budget if you're struggling to make ends meet. That could mean cutting back on some expenses temporarily until the cost of living dips back downward.

Of course, if the economic situation takes a drastic turn for the worse, then a follow-up stimulus round could be in the cards. But that's a scenario no one should hope for.

What is driving US inflation to a 39-year high? The reasons and solutions are complicated

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2022 is starting with a COVID surge and high inflation. Could that mean more stimulus checks? - USA TODAY