WASHINGTON – Treasury Secretary Janet Yellen indicated Sunday that the possibility of $2,000 rebate checks for Americans remains under consideration, while the Supreme Court prepares to hear arguments regarding the legality of tariffs imposed during the Trump governance. Yellen’s comments came as economic data reveals ongoing pressure on household budgets and a decline in consumer confidence.
The potential for direct financial relief arrives as the nation grapples with lingering inflation and a cooling economy. While average grocery prices in the US were 2.7% higher in September compared with last year – with coffee up nearly 21% year-over-year in August and bananas about 6.6% more expensive - the Trump administration recently announced exemptions from “reciprocal” tariffs on many agricultural imports, potentially easing some grocery costs. The Supreme Court’s upcoming decision on the tariffs could considerably impact trade relations and,consequently,consumer prices. A negative ruling for the tariffs could lead to increased costs on certain imported goods, while upholding them could maintain the current trade landscape.
“When those two lines cross,Americans are going to feel it,” Yellen saeid,referring to the interplay between tariff policies and consumer spending. The administration is weighing various options to provide economic relief, including the possibility of direct payments.
National Economic Council director Kevin Hassett suggested Sunday that removing the tariffs would increase the supply of goods into the US, leading to lower prices. Though,he also acknowledged that price increases weren’t solely attributable to tariffs.
Adding to economic concerns, the University of Michigan reported a drop in the consumer sentiment index to 50.3 this month from 53.6 in October, a potentially worrying sign heading into the holiday season. The Supreme Court is expected to hear arguments on the legality of the Trump-era tariffs in the coming weeks, with a decision anticipated later this year.
