We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

U.S. Fed decries wealth gap it helps perpetuate

12 1 37
27.08.2021

Federal Reserve officials often decry the unprecedented disparity between the wealthy and poor. But they usually avoid mentioning the direct role they have played in widening these financial disparities over the past few decades.

Officials within the Fed are always talking about inequalities of all kinds in the U.S. economy. But the problem is, the longer the Fed continues ultraeasy monetary conditions, the more the richest families benefit disproportionately. And without different fiscal policies from Washington, the poorest families largely miss out directly.

In other words, all things being equal, the Fed is actively making the wealth gap more pronounced.

For some context, its policy of keeping interest rates near zero and buying trillions of dollars of bonds has suppressed volatility and turbocharged asset prices, fueling some of the biggest stock and bond returns in history. As of March, the top 10% of wealthiest U.S. households owned an........

© The Japan Times


Get it on Google Play