Fed Is Misled by Wealth Effect

Fed is misled by Wealth Effect. “With so few people actually invested in the results of the stock market, how can it have such a broad effect on consumer spending? It doesn’t, unless the Fed wants to make the case that it is driven primarily by the trickle-down effect. I doubt they would want to do so for obvious political reasons.” But that’s exactly what the Fed is hoping for, though they dare not say so because the Left spent two decades whining about it after Reagan cut taxes. Truth is, the Reagan cuts were broad-based, the “wealth effect” BS isn’t.