How stimulus checks can lead to your money being worth less in the future
Published Date: 9/9/2020
Source: CNBC Television
The U.S. government has spent trillions of dollars to help shore up the economy during the coronavirus shutdown. The sudden influx of new money can lead to drastic changes to the value of American currency in the future. Watch this video to see how the dollar may be affected in the next few years and to see the Fed's plan to maintain stability. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi The federal budget deficit is on track to hit a record $3.3 trillion this year, and Democrats and Republicans are trying to work out the details on a second stimulus bill that could drive that number even higher. Historically, large deficits can lead to increased inflation, according to Sahil Bloom, a financial educator and vice president at Altamont Capital Partners. With greater inflation, the purchasing power of your dollar goes down, and that can happen when a government “prints” too much money, Bloom said. The biggest risk now is that the buying power of the dollar is too high, according to Bloom. Such “deflation” would lead to less spending and more saving, which would actually be bad for the economy, he said. Check out this video to learn why the value of your currency fluctuates, what it means for you and to see how the Fed plans to keep the dollar steady. Subscribe to CNBC PRO for access to investor and analyst insights on Netflix and more: https://cnb.cx/3dIH56N » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC For info on the best credit cards go to CNBC Select: https://www.cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV