Since March 2020, the Fed printed $4.9 trillion and repressed short-term interest rates to near-zero in order to inflate asset prices so that the asset holders would get immensely more wealthy, in line with its doctrine of the Wealth Effect.
This act has produced the greatest economic injustice committed in recent US history.
Since the Fed’s crazed money printing binge and interest rate repression started in March 2020, the wealth disparity between the average “top 1%” household and the average “bottom 50%” household has exploded by $11.2 million per household.
So average wages and salaries went up a lot, but by only a fraction of the amount that rents, and the prices of houses, used and new vehicles, gasoline, groceries, etc. shot higher. And the worker bees in this economy now have to tighten their belts further even as richest asset holders got vastly wealthier, thanks to the Fed’s policies.My “Wealth Disparity Monitor” of the Fed’s Money-Printer Era: Holy Moly. April Update of the Greatest Economic Injustice in Recent History | Wolf Street