The Real Reason for Income Inequality? The Fed

Income inequality in America has worsened in recent decades. Many on the left, buttressed by a not-insignificant number of those on the right, have argued for an increasingly progressive income tax code to tackle this problem. But they’re focusing on the wrong solution–instead, the target ought to be the Federal Reserve. While the central bank […]

Trump Federal Reserve Nominee Stephen Moore Explains Controversial Comments

Stephen Moore, President Donald Trump’s pick for the Federal Reserve board addressed past controversial comments, joking that there “should be a statute of limitations on saying stupid things,” and called for cameras in the Fed to increase public trust in the institution. “Why should it be top secret why the Fed did this and that?” […]

Bank Stocks Decline After Fed Signals No More Interest Rate Increases in 2019

The Federal Reserve signaled Wednesday that it’s unlikely to raise interest rates for the rest of the year, prompting the stock prices of banks to decline. In general, higher interest rates are positive for the profits of retail, commercial, and other banks, which earn interest on their substantial cash holdings in customer accounts. The announcement […]

U.S. Households Took Their Biggest Financial Hit Last Quarter Since the 2008 Crisis

U.S. households lost nearly $4 trillion in net worth last quarter amid the selloff in the stock market, the Federal Reserve said. It marked the biggest one-quarter decline since the financial crisis a decade ago. The Fed’s quarterly report on U.S. financial accounts said that the net worth of American households declined $3.73 trillion overall […]

Federal Reserve Regulators Ease Some Post-Great Recession Controls

Banking regulators are easing some controls that went into place after the Great Recession. The Federal Reserve decided to end some of the public pass-fail grades it gave big banks after their annual stress tests, which came about as part of the 2010 Dodd-Frank legislation. Banks have to report how they would perform under various […]

Former Fed Chairman Paul Volcker Is Worried About the ‘Culture of the Financial System’

Former Federal Reserve chairman Paul Volcker has some serious fears about the banking industry. And he believes supporting regulators to combat those fears is imperative. Speaking to analyst Mike Mayo in a CFA Enterprising Investor interview published on Monday, Volcker said that he’s “concerned” about the current “culture of the financial system, banking in particular.” […]