Fed's Brainard Says Inequality May Sap Consumer Spending

  • Brainard: health and income inequality at historic highs
  • Must understand barriers to equality as Fed assesses economy
Photographer: Matthew Busch/Bloomberg
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Wide disparities in wealth and income remain in the U.S., Federal Reserve Governor Lael Brainard said, citing soon-to-be-published data from the central bank’s latest Survey of Consumer Finances.

“Aside from reducing the long-run productive potential of the economy, persistently high levels of income and wealth inequality may also have implications for the robustness of consumer spending,” Brainard said Tuesday at a Fed board conference on disparities in the labor market.