EQUAL TIME

When Chairman Powell comes before Congress this week for his semi-annual monetary-policy review, questioning may turn still more forcefully to economic inequality.  Although this has been an increasing fixture of Fed hearings in recent years, this week’s sessions start the day after a PBS documentary focuses on the Fed.  Karen Petrou was interviewed extensively for this Frontline documentary based on her new book; all indications so far are that the documentary will be highly critical of the Fed’s inequality impact.  Monday’s New York Times is also expected to include a Petrou opinion piece highlighting the wealth-inequality impact of the Fed’s ultra-low rates.  All this will surely leave progressive Democrats still more dissatisfied with the Fed’s position that, unfortunate as economic inequality surely is, fiscal — not monetary — policy must address it.

Al071221.pdf