Is income inequality the reason why interest rates have been low?

Wealthy people and their savings are driving down interest rates, a recent paper suggests. Marketplace contributor Chris Farrell explains it.
A recent paper by economists suggest income inequality is the reason why interest rates have been low for decades. Above, a 2011 news report shows the Federal Reserve decided to keep interest rates near zero until 2013.
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What's behind the boom in IPOs?

Jun 17, 2021
The type of companies that have gone public this year are often in sectors that have done well during the pandemic.
According to Dealogic, the amount of money raised through IPOs in 2021 has already surpassed the total in 2020, and it's only June.
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Why the Fed is taking longer than other central banks to ease COVID relief

Jun 16, 2021
The Fed has a dual mandate to control inflation as well as unemployment, unlike other central banks.
A view of the Federal Reserve building in Washington, D.C.
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As home prices rise, so does mortgage debt

May 20, 2021
Are borrowers and lenders taking on too much risk?
Most analysts don't expect home prices to reverse in the near term, but if mortgage rates were to substantially increase, the pace of appreciation could slow.
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Housing is hot, and LA mortgage broker sees no sign of a slowdown

Apr 29, 2021
Vivian Gueler of Pacific Trust Group says demand for housing in Los Angeles is outpacing supply, thanks largely to low interest rates.
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Fed once again leaves interest rates unchanged

Chair Jerome Powell says the Fed is committed to its goals of 2% inflation and full employment.
Fed Chair Jerome Powell says the higher inflation we’re seeing now in some parts of the economy is temporary, and unemployment is still too high.
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Fed and Treasury chart path back to "full employment"

Feb 24, 2021
Fed Chair Jerome Powell and Treasury Secretary Janet Yellen peg the actual unemployment rate at around 10%, higher than the official 6.3%.
Federal Reserve Chair Powell testified on Capitol Hill about the U.S. labor market.
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For public good, not for profit.

How low interest rates may shape the start of a Biden presidency

Nov 24, 2020
The only thing really left is for Congress and a president to pass more stimulus.
President-elect Joe Biden announces key cabinet nominees at a press conference on Nov. 24 in Wilmington, Delaware.
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Fed Chair Powell says full economic recovery depends on managing COVID-19

Social distancing and wearing masks will help get the economy back to full strength, Powell said Thursday.
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The Fed meets again this week. It's likely to keep interest rates low for a while.

Nov 2, 2020
What do ongoing low interest rates mean for consumer saving and spending, and businesses seeking help with debt?
With bank accounts paying next to nothing in interest, some people are starting to spend their money.
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