I quote Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University. Is the Fed To Blame for Inequality in America? – Pairagraph Can you economists please simplify and explain this?
Of course, the Federal Reserve does have other levers besides interest rate policy. For example, when the Fed issues bank reserves (a form of short-term debt) to buy long-term Treasuries, it shortens the overall maturity of government debt in private hands. This does have some modest impact, albeit far less than it does through its interest rate policies.