How low interest rates could make inequality worse
By David Brancaccio, Rose Conlon, and Erika Soderstrom
Karen Petrou, managing partner at Federal Financial Analytics, says there’s “nothing” in the Federal Reserve’s new policy for “shared prosperity.” Low interest rates have helped prop up the stock market. They make mortgages and credit cards cheaper. But the Federal Reserve’s renewed commitment as of last week to lower interest rates for longer has a flip side. People living off their savings, which include many older people, suffer when savings and bond rates stay low.
