, Columnist
The Fed Made the Poor Poorer
Its policies have affected wealth inequality, but not in the way critics think.
Understandable.
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Have the U.S. Federal Reserve’s policies contributed to wealth inequality? Probably, but not in the way the central bank’s detractors think.
Critics of the Fed’s efforts to support economic growth often argue that policies such as low interest rates and asset purchases have disproportionately benefited the rich. After all, they work in part by pushing up the values of stocks and bonds, most of which belong to wealthy households. Logical as this may seem, I can’t find much support for it in the relevant data.