How the Fed Created the "Engine of Inequality" - And How We Can Fix It

Thanks for the podcast.  It is certainly not a simple issue.   I see three main points:

1) I agree with the guest that the near zero interest rate policy aggravates wealth disparity.  Debt is generally a burden for the poor not a resource.  Credit is a resource to the wealthy who use debt strategically. 

2) Making debt cheap clearly favors more intense automation of the workplace as it accelerates the displacement of labor with capital resources.  This displacement reduces the opportunity for people to create a living wage.

3) Publicly announced assurances that monetary policy will continuously be positioned to compensate for current and future financial stress creates a favorable distortion benefiting investors compared to a free market approach where risk must be addressed without the perceived safety net.

I have been surprised over recent years that this has not become more of a political topic.

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Neil Stanley
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Original Message:
Sent: 03-03-2021 15:35
From: Barb Rehm
Subject: How the Fed Created the "Engine of Inequality" - And How We Can Fix It

Listen to the latest Banking with Interest podcast. Karen Shaw Petrou, noted bank analyst and author of the new book "Engine of Inequality," details how the Federal Reserve's monetary policy and overaggressive bank regulation following the financial crisis have worsened economic inequality. She also discusses how policymakers can reverse course.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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