The Great Economic Injustice by the Fed: The wealthy got immensely wealthier == Everyone else paid for it via rampant inflation

 FULL  ARTICLE  HERE:

https://wolfstreet.com/2022/04/03/my-wealth-disparity-monitor-of-the-feds-money-printer-era-holy-moly-april-update-of-the-greatest-economic-injustice-in-recent-history/#comment-422330

Carefully Selected Quotes,
by Ye Editor

"The Fed’s own data on the distribution of wealth in the US is a quarterly report card on the Fed’s official policy goal of the “Wealth Effect.”

It has now released the data for Q4 2021.

The Fed uses monetary policies, such as QE (money and credit expansion)and interest rate repression, to create asset price inflation and make a relatively small number of large asset holders vastly wealthier so that they might spend more.

This has been explained in numerous Fed papers, including by Janet Yellen back when she was still president of the San Francisco Fed.

The Fed’s wealth distribution data divides the US population into four groups by wealth: The “Top 1%,” the “2% to 9%,” the “next 40%,” and the “bottom 50%.”

My Wealth Effect Monitor divides this data by the number of households in each category, to obtain the average wealth per household in each category.

Note the immense increase in the wealth for the 1% households after the Fed’s money-printing scheme and interest rate repression started in March 2020:

As you can see from the steep curve of the red line, the “Top 1%” households were the primary beneficiaries of the Fed’s policies since March 2020. These policies were designed to inflate asset prices, and only asset holders benefited from that.

The more assets they held, the more they benefited.

The Census Bureau defines a household by address.

Each address is one household, whoever lives there, whether they’re a three-generation family, four roommates,
a married couple, or a single person.

So here is the average wealth
(= assets minus debts)
per household, by category
in Q4, 2021:

    “Top “1%” household (red): $36.2 million.
    The “2% to 9%” household (yellow): $4.68 million.
    The “next 40%” household (purple): $775,000.
    The “bottom 50%” household (green): $59,000. ... "