Why the Federal Reserve is an “engine of inequality”



We often talk about what causes Economic inequality – the stagnation of the incomes of the working class, the way in which the United States taxes wealth against wages, the high cost of living.

But banking insider Karen Petrou says there is a powerful driver of inequality that has so far avoided real scrutiny: the Federal Reserve.

“The Fed is the only entity I know of that could, under current law, make a significant difference,” she said. his political mouth. “

Today, About: Interest rates, inflation, employment. This is where the fed formally flexes its power. This is also why Petrou says it is a ‘driving force of inequality. ‘ Could this change?

Guests

Karen petrou, managing partner at Federal financial analysis, a federal consulting firm. Author of “Driving Inequality: The Fed and America’s Future of Wealth. “(@KarenPetrou)

Jeffrey Lacker, former chairman of the Federal Reserve Bank of Richmond from 2004 to 2017. Distinguished professor of economics at Virginia Commonwealth University.

From the playlist

New York Times: “Only the rich might like this economic recovery“-” Conventional wisdom holds that the lower a central bank sets interest rates, the faster the economy grows. But the longer the rates remain ultra low, it is not the economy that is growing, it is inequality. “



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