Bernanke: Fed QE Contributes To Inequality, Says It Should Not Concern Fed

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Mark Melin
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Ben Bernanke The Courage To Act

Former U.S. Federal Reserve Chair Ben Bernanke acknowledged today that the use of “non-traditional” quantitative stimulus might have, in fact, widened income inequality, but he also notes this didn’t disadvantage the middle class and poor and said it should not be a concern of monetary policy. “The claim that Fed policy has worsened inequality usually begins with the (correct) observation that monetary easing works in part by raising asset prices, like stock prices,” Bernanke wrote on his Brookings Institute blog today.  “As the rich own more assets than the poor and middle class, the reasoning goes, the Fed’s policies are increasing the…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

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