Nothing to suggest trickle-down monetary policy will suddenly work
By Karen Petrou

Ever since March 15, the Federal Reserve has opened its scant toolkit and hurled everything it could still find into a desperate effort to arm financial markets against a storm of falling knives. It didn’t work. This crisis isn’t in the markets — it’s in the air, on the door knobs and most of all, in the fear that keeps people home and cuts off hundreds of millions of Americans from the paychecks on which they counted only last week. Trickle-down monetary policy has worked no better than trickle-down fiscal policy since 2010, giving the U.S. the slowest recovery of modern times, and the most inequality in decades that grew far worse faster than ever. More of the same makes matters worse. Even the markets now know that trillions from the Fed aren’t enough. The only policy that will make a meaningful difference is to flood households — not financiers — with urgently-needed liquidity.