At a November confirmation hearing, Janet Yellen was asked whether Federal Reserve policies had mostly benefited wealthy people, while doing little to improve life for the common man. After all, ultra-low interest rates and quantitative easing likely contributed to the run-up in stock prices over the last few years.
We recently talked with Catherine L. Mann, a finance professor at Brandeis University’s International Business School, about her views on whether Fed policy was enriching the rich and leaving the middle-class and poor behind, and thereby increasing inequality. Here’s what she said:
If you’re interested in the data behind her comments, take a look at the change in the S.&P. 500 stock index over the last few years:
And here is the change in house prices:
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