A piece in the Wall Street Journal is accusing the FED of embracing “trickle-down” in spite of the evidence of the last three decades. It says, the FED contributes the the growing wealth disparity and the vanishing middle class by expanding credit to processors to political privilege and economic power.
The FED, says the article, does not expand the money supply uniformly, but rather to the big banks. This makes for a wealth transfer from the middle class to the most affluent or the 1%.
One of the great challenges we have is to make a break from the ideology of “trickle-down”. Not only is political policy and tax policy at fault, but also the Federal Reserve is afflicted with this un-American thinking !