Who benefits from the FED?Submitted by emalvini on Tue, 03/12/2013 - 14:54
Who benefits from the FED?
by David Howden | Mises Daily
Thursday, March 07, 2013
We recently looked at the Federal Reserve’s 2012 results. In particular, we pointed to some positive and negative developments. On a positive note, the Fed managed to shrink down the size of its balance sheet by approximately one-third of a percent. (Hey, it’s a start.) On a negative note, this decrease occurred because banks shifted their holdings of reserves into cash, thus forcing the Fed to sell off some of its assets. I explained that this is a potentially negative result, as the shift into cash brings with it inflationary pressure on prices.
In this article I want to point out who has benefited from the Fed’s operations over the past year.