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.
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.