The NYT Goes Looney Tunes on the Fed

Source: CounterPunch
by Dean Baker

“The New York Times had a bizarre piece by Karen Petrou attacking the Fed for its low interest rate policy. The column title tells the story, ‘Only the Rich Could Love This Economic Recovery.’ This is bizarre, because people who read the news section of the NYT would know that workers have more bargaining power in the economy right now than at any point since at least the late 1990s. The quit rate hit a record level in April, and even with a drop in May, it is still at a 20-year peak. … It’s true that low interest rates tend to raise asset prices, and since the rich own a hugely disproportionate share of assets, this means that they will get richer if rates are low, but it is hard to see how low and middle class people would benefit from higher interest rates.” (07/14/21)