“People in America get really angry at the Federal Reserve and at the "money system" in general during economic crises. The Fed draws hostility because of its power, its insulation from democratic accountability, its lack of transparency, and because of its historical and structural connections to finance.” PeopleAmericaEconomicDrawsConnectionsCrisisAngryHistoricalDemocraticFinanceAccountabilityFedsReservesHostilityGet RealTransparencyFederal ReserveEconomic CrisisInsulation Author:Gerald Epstein
“Critics, often for good reason, are concerned that the Fed is wielding its vast powers in the interests of the banks and not in the interests of the people. After the financial crisis, Americans have perceived that the banks have been bailed out, but a significant proportion of the population is still in serious economic trouble.” PeopleHas BeensStillsReasonInterestTroubleEconomicSeriousConcernedCrisisCriticsFinancialPopulationSignificantProportionFedsFinancial Crisis Author:Gerald Epstein
“There is no doubt that the Fed's large-scale asset purchases have caused major increases in a number of asset prices in the economy. This is especially true of mortgage backed securities and corporate bonds, and quite possibly of equities as well. For those people and institutions holding those things, the run up in prices has been a wealth bonanza.” PeopleWellsHas BeensRunningWealthNumbersEconomyDoubtSecurityMajorsIncreaseInstitutionsScalesCorporateNo DoubtFedsAssetsEquityMortgageLarge ScaleCorporate Bond Author:Gerald Epstein
“Initially, QE contributed to a pretty significant increase in inequality. It raised asset prices, which are owned primarily by the wealthy, while having relatively small if any positive impacts on bank lending, employment, wages or economic growth, so ordinary people haven't had much help. By the third round of QE in 2012-2014, the effects had likely muted quite a bit. There were probably not big impacts on asset prices from QE and the positive effects on employment growth might have strengthened somewhat.” PeopleIfsHelpingBigsMightBitsGrowthEconomicEffectsHavensOrdinaryThirdsIncreaseImpactRaisedRoundsSignificantEmploymentInequalityWealthyAssetsWagesOrdinary PeopleEconomic GrowthLendingPositive ImpactHaving StrengthBig Impact Author:Gerald Epstein
