Charles Schwab: Fed’s Policy Harming Economy

“CEO Charles Schwab says the Federal Reserve’s prolonged, “emergency” near-zero interest policy is hurting, not helping the economy.

“The Fed policy has resulted in a huge infusion of capital into the system, creating a massive rise in liquidity but negligible movement of that money,” Schwab writes in The Wall Street Journal. “It is sitting there, in banks all across America, unused.”

“The multiplier effect that normally comes with a boost in liquidity remains at rock bottom. Sufficient capital is in the system to spur growth — it simply isn’t being put to work fast enough,” wrote Schwab, the founder and chairman of the Charles Schwab Corp.”

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