ORLANDO, Fla, : The Fed can't win. Its only real route to fighting rising U.S. income inequality – blamed last week for trapping interest rates at ever lower levels – will only exacerbate more egregious wealth gaps.
A paper published at Jackson Hole by the Kansas City Federal Reserve last week claimed rising income inequality over many decades was largely responsible for structurally lower interest rates because it channeled more money to richer households who typically save more.
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