This is a day for the history books. A major news network – not Fox News – has finally managed to piece together that Federal Reserve policies displace economic hardship from the wealthy to the poor.
And CNN too, of all the criters.
It only took them 3 years, 9 months, and about 28 days – but they got there.
NEW YORK (CNNMoney) — The Federal Reserve’s most recent stimulus is expected to boost home prices and the stock market, but what if you’re too poor to invest in either?
The Fed unveiled its third round of stimulus last week. The massive bond-buying initiative, called quantitative easing, aims to prop up the economy through a few key channels — namely the housing market and thestock market.
Both of those channels skew in favor of Americans who are already in solid financial standing, and it seems the wealthier you are, the more you have to gain.
“Quantitative easing is a blunt tool and cannot really target specific areas of the economy, aside from mortgage rates. Even then, it tends to help the wealthy spectrum of the income distribution,” said Sung Won Sohn, economics professor at Cal State Channel Islands.