Congress has yet to pass a second round of stimulus checks, but we already know how the potential new payments will be funded.
The CARES Act in March authorized about $300 billion in stimulus checks to go directly to Americans’ bank accounts.
The payments process involves an interesting way to borrow and figuratively print money, according to Sahil Bloom, a financial educator and vice president at Altamont Capital Partners.
Bloom said that the government can create money without actually printing physical currency. “We live in a digital age. So really money is just numbers on a screen,” he said.
The undertaking involves three key players: Congress, the Department of the Treasury and the Federal Reserve. Check out this video to see who actually “clicks the button” and to learn how the process can backfire.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
