In a bizzarely tangential exchange yesterday between Republican Representative Scott Garrett and Fed head Janet Yellen, Garrett accused Yellen of lining Wall Street pockets and worsening income inequality.
“Why do you see a need to benefit Goldman Sachs?” Garrett asked.
“I’m sorry, we are not trying to benefit the rich,” Ms. Yellen responded, reiterating that, since the recession ended in 2009, 14 million new jobs have been created.
“Excuse me, I have the floor,” Mr. Garrett interrupted irrately.
Garrett didn't press the Fed chair and veered off in another direction entirely but, despite his opportunistic invocation of populism, the Congressman's point is taken.
"Thank God for the Federal Reserve and all its reverse socialism, otherwise where would income inequality be without it," Hedgeye Senior Macro analyst Darius Dale wrote wryly yesterday, in response to a Wall Street Journal article that showed a significant rise in upper-middle class wealth. Unsurprisingly, middle and lower class family wealth has stagnated or declined.
As you can see in Dale's charts below, the Fed's easy money has actively promoted this trend:
Click images to enlarge
It's a truly sad outcome.
And yet more proof of the Fed's flawed policies.