Trump's $2, 000 Checks: A Double-Edged Sword for the Economy?

President Donald Trump has suggested giving Americans $2, 000 checks using money from tariffs. This idea has sparked a lot of discussion among experts. Some worry it could make inflation worse, while others think it might help the economy. Inflation is already high. Adding more money into people's hands could push prices up even more. Experts like Erica York from the Tax Foundation say this could be risky. She believes it might force the Federal Reserve to keep interest rates high, which could slow down economic growth. On the other hand, some see a silver lining. Chris Beauchamp, an analyst at IG, thinks the checks could boost consumer spending. This could be good news for jobs and the overall economy. However, the big question is whether there's enough money from tariffs to fund these checks. The U. S. has collected about $195 billion from tariffs this year. But the cost of sending $2, 000 checks to eligible households could be much higher. Maurice Obstfeld from the Peterson Institute for International Economics estimates it could cost over $200 billion. This raises concerns about adding to the national debt, which is already enormous. Another issue is whether Trump's plan is even feasible. The Supreme Court is reviewing the legality of his tariffs. If the court rules against him, the checks might not happen. Some experts doubt Congress would pass such a plan, especially without more details. Trump has said any leftover money from the tariffs could go toward paying down the national debt. But with the debt already at $38 trillion, this seems like a tall order. The fate of the tariffs and the checks depends on the Supreme Court's decision, which is expected by the end of the year.