Richard Fisher: "Wealth Effect" Did Not Trickle Down

Former Dallas Fed President Richard Fisher weighs in on the impact of the Fed's wealth effect policy.

RICHARD FISHER: Another thing, Joe, that I think is not spoken of enough [about the Federal Reserve]. It has undermined or eviscerated the basic institutions that middle-income earners, hard workers depend upon: insurance companies, pension funds, state pension funds. It devalued their savings.

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We were going to have a wealth effect. That was achieved. We made wealthy people wealthier. But the point is it didn't trickle down, and we have taken away a lot of the ability of consumers to use their savings to spend.