How the Federal Reserve Protects the Top One Percent

Source: The American Prospect
by Gerald Epstein & Aaron Medlin

“It’s hard to understand why the Federal Reserve kept interest rates very low for most of three decades and then shifted to keeping them unnecessarily high—until you appreciate one thing. A paramount goal of the Fed is helping owners of capital conserve and increase their concentrated wealth. Then the apparent inconsistency makes perfect sense. Chair Jerome Powell and the Fed are willing to impose significant costs on workers and families in order to reduce inflation. The Fed’s policy of raising interest rates (by more than four percentage points in the last year) can work only if the higher interest rates end up throwing millions of workers out of their jobs.” (01/19/23)