Our Services

Engine of Inequality, by Karen Petrou

The first book to reveal how the Federal Reserve holds the key to making us more economically equal, written by an author with unparalleled expertise in the real world of financial policy.

Following the 2008 financial crisis, the Federal Reserve’s monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. In Engine of Inequality, Karen Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation as quickly and painlessly as possible.

Order your copy now.

“Petrou’s book uncovers a hidden engine of our skyrocketing inequality: financial-policy. In an accessible and engaging prose, Petrou takes us through the inner workings of monetary policy at the Fed and financial regulations, how they’ve made inequality worse and how they could instead be retooled to take us to a more equitable future. A novel look at the problem of inequality and bold ideas to help resolve it. A must read.”—Emmanuel Saez, Professor of Economics at the University of California Berkeley and author of The Triumph of Injustice

Read full description and reviews.

Industry Expert

Federal Financial Analytics (FedFin) is a Washington-based financial services-consulting firm that has for decades attracted a high-powered clientele in Washington, on Wall Street, and among global central bankers. Since 1985 FedFin has provided a unique blend of analysis and strategic advice on public policy, regulatory, and legislative issues for industry and governmental clients doing business in the U.S. and abroad.

A proprietary think-tank for its clients, FedFin reviews critical federal and global policy developments in banking, insurance, asset management, and mortgage finance, analyzes them in great depth, and then advises clients on whether what they want can be made to work for them, within the policy environment and for the financial system. It is FedFin’s guiding principle to be an honest broker, and clients depend on the fact that the firm does not offer lobbying or any other services that could compromise its objectivity and independence.

As seen In:

In the News

Marketplace, Monday, June 17, 2024

June 17th, 2024|

Why are bond prices up right now? And what difference does it make? By Mitchel Hartman We’re in the midst of a bond market rally. In the last eight weeks — barring Monday, when the bond market retreated a bit — bond prices have been going up, as their yields [...]

American Banker, Wednesday, May 8, 2024

May 8th, 2024|

Will Democrats stand by Gruenberg? By Clair Williams Lawmakers — mostly Republicans — let loose almost immediately after the release of an independent review of the Federal Deposit Insurance Corp.'s workplace culture, calling for the agency's chairman, Martin Gruenberg, to resign. Those calls, while neither entirely new nor unexpected, were [...]

American Banker, Friday, April 19, 2024

April 19th, 2024|

Is the Fed board eroding regional Fed banks' independence? By  Kyle Campbell  The Federal Reserve Board of Governors has a greater say over leadership at the reserve banks than it once did. But whether that benefits the central banking system is an open debate...Karen Petrou, managing partner of Federal Financial [...]


Subscribe to our Newsletter highlighting FedFin’s latest financial-policy analysis and advice.

Economic Equality Blog

Economic Equality Blog is aimed at showing central banks and financial regulators how to put their formidable thumbs on the equality scale in favor of those whose income and wealth suffer so much in the wake of the great financial crisis.

Issues in Focus

The Vault

FedFin on: Squeezing Closed Ends

Late Friday afternoon, FHFA hoped quietly to announce that, while it was approving the gist of Freddie’s request to purchase certain closed-end second liens, it heard many critics and would sharply curtail the approval and, should it go any farther, seek still more public comment.  For good measure, FHFA Director Thompson even invited comment on the new program approval process, one of the more controversial provisions in 2008’s GSE-regulatory rewrite... The full report is available [...]

June 24th, 2024|Categories: The Vault|Tags: , |

Karen Petrou: Why Synthetic CRT Isn’t the Crisis It’s Cracked Up to Be

Last week, several press reports slammed synthetic credit risk transfers (CRTs) on grounds that the biggest U.S. bank in this sector which is of course the biggest global bank ever – JPMorgan – is creating new and serious risks when it scores SCRTs.  It’s easy to assume that anything “synthetic” is more dangerous than the “natural” way a bank absorbs credit risk, but this is simply not the case as [...]

June 17th, 2024|Categories: The Vault|

FedFin on: AI Implementation

Although pressed by Congress to reach conclusions about AI’s risk in the financial sectors, Treasury is following up the worries in the most recent FSOC report with only a request for information (RFI) from the public.  The RFI follows an Executive Order (EO) from President Biden in 2023 instituting a “whole-of-government” program to identify best-use and high-problem aspects of AI from both a private- and -public sector perspective.... The full [...]

Go to Top