Talk about government making wealth inequality worse. But The Federal Reserve, part of wealth inequality problem, apparently just can’t say no to worsening inequality.
Median asking rent for housing (white line) in the US rose 22% since January 2020, the beginning of the Covid epidemic. The Federal Reserve intervened (again) in March with a massive surge in mortgage-backed securities (orange line). The median price of existing home sales rose 27.6% over the same time period.
A Realtor friend of mine in California sent me this graphic for Laguna Beach, California. Condo median prices up 272.2% since last year. Great news for households that already own housing, really bad news for renters.
I just shook my head when The White House proclaimed that food for July 4th BBQs are down compared to last year.
Odd, because food is actually up 67% since the same time last year. Talk about cherry-picking data.
It is less that Biden’s economic plans are working(?), but rather it is The Federal Reserve printing wealth inequality by benefiting some and not others.