Richard Clarida, vice chairman of the Federal Reserve, appeared before the Council on Foreign Relations Thursday and spoke about the strengths in the American economy in the new year. He noted the Fed’s interest rate cuts throughout 2019 and the country’s continued strong labor market and low inflation.
But a new study published Thursday by the Pew Research Center found 70% of Americans believe the economy unfairly favors groups like politicians, large corporations and wealthy Americans. “Marketplace” host Kai Ryssdal spoke with Sarah Binder, professor of political science at George Washington University, about how the Fed can influence economic inequality.
“You see wage gains at the lower end of the economic spectrum. At a certain point though, there’s only so much that monetary policy can do,” Binder said. “Absent fiscal policy that might deal with job training, or job relocation, or health care, there’s only so much weight that can be put on monetary policymakers.”
Click the audio player above to hear the interview.