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Fortune
Fortune
Tristan Bove

Stimulus money is partly behind soaring U.S. inflation, Fed study finds

President Joe Biden giving a speech at an event in New York (Credit: Stephanie Keith—Bloomberg/Getty Images)

The early days of the pandemic were among the darkest economic moments in recent history for low-income Americans struggling with unemployment and lost incomes. The Trump administration quickly provided relief by signing a $2 trillion package in March 2020 that sent $1,200 checks to every American who earned less than $75,000 along with enhanced unemployment, and forgivable business loans. President Joe Biden followed with additional stimulus money. 

In total, American households received more than 472 million pandemic relief payments worth $803 billion. In total, nearly $5 trillion went to households, businesses, local governments, and other institutions.

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