“The Fed has a lot of power in the economy because it has a big impact on the supply and cost of credit, that is, interest rates. It also plays a key role in supervising banks and historically has seemed to take it easy on the banks when it shouldn't have, such as in the lead up to the financial crisis.” PlayBigsEasyInterestRolesEconomyKeysCostCrisisImpactRateFinancialCreditFedsInterest RateFinancial CrisisTake It EasyBig Impact Author:Gerald Epstein
“Here's the interesting thing: the fact that QE and lowering interest rates almost to zero has worsened inequality, does not mean that raising interest rates will help reduce inequality.” MeanDoeFactsHelpingInterestInterestingRateInequalityZeroInteresting ThingsInterest Rate Author:Gerald Epstein
“Increases in interest rates normally worsen inequality, at least partly by reducing employment and wage growth.” GrowthInterestIncreaseRateEmploymentInequalityReducingInterest Rate Author:Gerald Epstein
“Raising interest rates might lead to some initial reductions in wealth by lowering asset prices, but it could also take a bite out of your paycheck and dampen your prospects of finding a job. It's a bit of damned if you do and damned if you don't.” IfsMightJobsBitsInterestWealthFindingsRateAssetsBitesInitialsReductionProspectsPaychecksInterest Rate Author:Gerald Epstein
