US EditionLa Reserva Federal admite que no puede solucionar fácilmente un problema económico que ella misma contribuyó a crear
Federal Reserve policies during the pandemic favored asset owners, widening the wealth gap as 20% of homeowners benefit from below 3% mortgage rates, officials said.
- On December 16, Fed policymakers acknowledged recent policy choices widened U.S. inequality, with Waller noting the top third sees strength while the lower half asks `What happened?`
- Since 2008, large liquidity injections and ultralow rates reshaped asset values as the Federal Reserve slashed rates to near-zero in 2020 and kept them low until March 2022, benefiting millions of Americans.
- In September, wage growth averaged 3.7% for the bottom quarter versus 4.4% for top earners, while about 20% of homeowners still have mortgage rates below 3%, per Federal Reserve Bank of Atlanta and Fannie Mae data.
- Over the past two years the Fed cut its benchmark lending rate by 1.75 points to support the labor market and aims to prevent deterioration while targeting a 2% inflation goal, San Francisco Fed President Mary Daly said.
- Because the Fed's tool is blunt, it cannot deliver targeted help to specific groups; low-income households mostly depend on wages and face affordability concerns and job-loss risk, experts warn.
15 Articles
15 Articles
La Reserva Federal admite que no puede solucionar fácilmente un problema económico que ella misma contribuyó a crear
Análisis de Bryan Mena, CNN Las decisiones de política monetaria de la Reserva Federal en los últimos años han exacerbado la desigualdad económica en Estados Unidos, y algunos de los responsables de la política monetaria del banco central afirman que no es un problema que puedan solucionar fácilmente. Millones de estadounidenses, especialmente los más ricos, se beneficiaron de las tasas de interés ultrabajas durante la pandemia, cuando la Fed fl…
Analysis by Bryan Mena, CNN The Federal Reserve's monetary policy decisions in recent years have exacerbated economic inequality in the United States, and some of the central bank's monetary policy makers claim that it is not a problem they can easily solve. Millions of Americans, especially the richest, benefited from ultra-low interest rates during the pandemic, when the Fed flexed monetary policy to prop up the economy. Loan costs are now wel…
The Fed admits it can’t fix an economic problem it helped create
Low-income Americans have missed out on the wealth effects that have benefited the highest earners. The Fed, which has played a role in what economists refer to as the K-shaped economy, can’t easily fix this divergence in wealth.
Fed officials warn rate policy helped deepen America’s K-shaped economy”
The Federal Reserve’s pandemic-era rescue helped keep the US economy from collapsing, however some policymakers now acknowledge a hard side effect: the choices that stabilized markets also widened the gap between Americans who own assets and those who do not. Millions of households, especially wealthier ones, locked in ultra-low borrowing costs when rates were near zero. Even after rates rose sharply, about 20% of homeowners still have a mortgag…
Fed Policies May Have Widened US Wealth Gap, Officials Note No Easy Fix
The post Fed Policies May Have Widened US Wealth Gap, Officials Note No Easy Fix appeared on BitcoinEthereumNews.com. Federal Reserve policies during the COVID-19 crisis have exacerbated the K-shaped economy, widening the wealth gap as affluent households benefit from low rates and asset gains while lower-income groups face stagnant wages and high costs, with officials admitting no quick fix exists. Low mortgage rates locked in: About 20% of hom…
Fed admits it made America's wealth gap worse, and has no fix
Central bank leaders acknowledge their actions during the Covid health crisis have made economic divisions worse, with no simple solution in sight. America’s central banking system has made the divide between wealthy and struggling households bigger through its recent policy choices, and top officials say they don’t have an easy way to reverse this trend. During the health crisis, millions of people, particularly those with money, benefited from…
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