Has the Fed actually helped the average person with its policies, or just the privileged few on Wall Street? At least one analyst believes the Fed has done a lot for Main Street which has mostly gone unnoticed. Huge Johnson believes the Fed has helped the American public in three ways. It provided stability to banks when there was none, allowing them to feel comfortable lending again. Fed programs have helped boost stocks and home prices, resulting in the wealth effect. And, lower rates have helped many people pay down debt. I happen to agree with all three of these points. While the Fed certainly helped Wall Street, it did so in order to help Main Street as well. However, the Fed can only directly impact the supply side of the equation. Creating demand is an entirely different story. (VIEW LINK)
Good share Jay, but i would have take issue with some of this. Firstly, loan growth from the US banks has been non-existent (in fact i think lending to SME's in the US just turned marginally positive for the first time in 4 years), so his first point is highly questionable. His second point is true, but stock market wealth is highly concentrated, main street guys aren't getting much of that action at all.