Breaking Down The 'IOER': Interest Paid On Excess Reserves

We decided to start this week’s letter with the latest data put out from the Federal Reserve’s latest “Survey of Consumer Finance.”  The headline data posted shows that the share of overall wealth of the top 1% of Americans was 38.6% and the other 90% of Americans held just 22.8%, which means that the wealthiest 1% of this country are some 70% richer than the other 90%.  We have said all along that the QE policies of central banks have benefitted only the top 1% in terms of income distribution.  This isn’t the type of capitalistic distribution I think general Americans had in mind from their monetary printing overlords.  However, we know that the inevitability of such an outcome was...