Wednesday, February 25, 2015

The U.S. Federal Reserve and Shared Prosperity

By Thomas Palley

The Federal Reserve is a hugely powerful institution whose policies have an enormous effect throughout the economy. For that reason, it is doubtful the United States can achieve shared prosperity without the policy cooperation of the Fed.

Now, with the economy stronger, there is debate over whether the Federal Reserve should raise interest rates. That conversation is important, but it is also too narrow.

It keeps policy locked into a failed status quo which has seen the Fed consistently take care of Wall Street first, while placing the concerns of Main Street a distant second. Though the Great Recession has triggered some policy shift toward helping ordinary Americans, much more is needed.

Read rest here.

No comments:

Post a Comment

Elon Musk (& Vivek Ramaswamy) on hardship, because they know about it

I noted (here on the blog and also here ) that I didn't think predictions about inflation acceleration and a recession as a result of a ...