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Levitating stocks unlikely to help Fed's economic equality efforts

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U.S. Federal Reserve chair Jerome Powell tried to address economic inequalities in his landmark policy move. Still the Fed holding rates lower-for-longer may support bulging asset prices - which is unlikely to benefit the neediest and could well widen the wealth gap in the near term.

FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo

An analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University, said that 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, limiting the power of a stock market rally to turn into broad gains in household wealth. Still, it may take years for that strategy to pay off for workers at the lowest echelons of the job market, often women and people of color who account for a disproportionate share of low-wage jobs. But the payoff for the asset-holding class is already underway.

Investors noted the limits to what the Fed can achieve on its own and stressed the importance it comes alongside fiscal policy.

 

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The stock market is not the economy

Smoke and mirrors. The reset will fix it. 👍🏼

America is recovering from Covid, very well.

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Breakingviews - Fed policy review will leave market put untouched(Reuters Breakingviews) - Federal Reserve Chair Jerome Powell has been too effective. His pledge to purchase corporate debt, including some with a junk credit rating, has boosted bond and equity prices since March, despite lousy economic projections. Backstopping asset prices is the unspoken precept that underlies the new policy framework he will soon unveil. Please do for once your job The fuck this even mean? Thanks. Very nice to see
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