Why the Federal Reserve is an ‘engine of inequality’
Hosted by Meghan Chakrabartti
We often talk about what’s causing economic inequality — stagnant working class income, the way the U.S. taxes wealth v. wages, the high cost of living. But banking insider Karen Petrou says there’s a powerful driver of inequality that’s avoided real scrutiny: the Federal Reserve. “The Fed is the only entity I know of that could, under current law, make a meaningful difference,” she says. Today, On Point: Interest rates, inflation, employment. That’s where the Fed formally flexes its power. That’s also why Petrou says it’s an ‘engine of inequality.’ Could that change?