The Federal Reserve's control of interest rates can indirectly affect income inequality. When the Fed lowers interest rates, it encourages borrowing and investment, which can stimulate economic growth. This growth can lead to job creation and wage increases, potentially reducing income inequality. However, low interest rates can also inflate asset prices, benefiting those who already own assets and potentially exacerbating income inequality. Conversely, when the Fed raises interest rates to curb inflation, it can slow economic growth and potentially increase income inequality if the burden falls disproportionately on lower-income individuals.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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