This consideration applies to the making of monetary policy in normal times; in times of turmoil, the case for humility is stronger. On monetary policy…in times of financial market turmoil The Fed sets monetary policy to support the real economy through several important channels. In times of financial market turmoil, policymakers like me are especially focused on disruptions in the so-called credit channel.
[9] Distributional implications are also routinely tracked, and the assessment is that monetary policy measures, including asset purchase programmes contribute to a reduction in income inequality through positive employment and wage effects, while their implications for wealth inequality can be mixed, as asset holdings tend to exhibit heterogeneity.