Overreliance on the Fed is compromising the future for millennials

By Sheila Bair (original source CNBC)

“Millennials have been dealt two very bad economic hands during their lifetimes.

First, they weathered the 2008 financial crisis brought about by reckless risk-taking in the financial sector. Now, they confront a much more severe economic calamity caused not by Wall Street’s misbehavior but by a malicious virus. Yet in both situations, the burden is disproportionately falling on working families, many of them millennials who are just now starting to accumulate some wealth and security.

And while Washington has responded aggressively with early commitments to help Main Street, as stimulus programs unfold it’s becoming apparent that Wall Street (again) is going to come out on top.

The primary reason for this is that our elected officials have ceded too much responsibility for the economy to the Federal Reserve. But the Fed is not well equipped for this role. It is essentially a big bank, primarily configured to lend to other big banks.”

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