In the same interview, the new Fed chair states that the reason QE is good is because it causes rising house and stock prices, and that this wealth effect causes people with houses and stocks to spend more money, which creates more jobs for other people, who don't have houses and stocks.
And yet nonsensically the Fed chair insists that "it isn't true" that QE increases inequality or that it is "just helping rich people."
Who owns houses and stocks, the working poor or the already rich, especially in the case of stock ownership, which is heavily concentrated in the top 20 percent of the population in the US?
This is trickle-down economics; and one thing we know about trickle-down economics is that it increases inequality.
A more pure statement of the Austrian proposition that the control of credit benefits those with first access to the new money cannot be imagined.
Oh, and I'm sorry, did I forget to mention that blowing asset bubbles is now part of the Fed's mandate? That's their story and they're sticking to it. The best denial is the non-denial.
"Yes, we're doing exactly what you have been accusing us of doing. Do you have a problem with that?"
How Janet Yellen can live with herself is beyond me. She did a good simulation of intellectual integrity for so long.
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