Low U.S. Rates Exacerbate Racial Wealth Gap, Paper Shows.

(Bloomberg) -- Keeping interest rates low in an effort to boost a weak economy, which the Federal Reserve has signaled it will do through at least 2023, may actually exacerbate wealth inequality between White and Black households, according to a new economic paper. The gains in stock prices that come with a low interest-rate environment and disproportionately benefit White Americans, far outweigh the job and income gains that Black citizens experience at the same time, according to the paper released Friday. "With the instruments available -- all of which work through effects on asset prices and interest rates -- a central bank would not be able to design policies for an income-gap reduction objective without increasing wealth inequality.". [Extracted from the article]