What Did The Fed’s Monetary Policy Do For The Middle Class? The Answer In One Chart

In a detailed study, “Financial Repression: The Unintended Consequences,” Swiss Re makes the case that the Federal Reserve’s Monetary policy is having major consequences including:

1. Repression of the middle class saver due to extremely low interest rates.
2. A massive wealth transfer from the govt to the top 1% due to a bubble like rise in stock prices. 

Here are the numbers

 Since 2009 – US Debt / Balance Sheet

 Since 2009 – Increase in Fed balance sheet effect on stock prices

Since 2009 – The increase in top 1% vs. middle class total financial wealth

Financial Repression The Unintended Consequences

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Would it not have made more sense for the government to help the 92 million out of work start their own businesses vs. pumping up stock prices for a so called “wealth effect”?

Pumping up stock prices did not create real full time employment. 

The real current unemployment rate (old methodology) is upwards of 20%.