“I don’t think there has been a greater engine of inequality than the Federal Reserve Bank of the United States so hearing the Chairman talking about visiting homeless shelters is very rich indeed”
In a refreshingly frank statement that surprised many, billionaire fund manager Stan Druckenmiller blasted Fed Chairman Jerome Powell for his role in driving up wealth inequality with easy money policies.
Druckenmiller spoke at the 2021 Student Investment Fund Annual Meeting at the USCMarshall School of Business Center for Investment Studies via Zoom call. He was asked about the Fed’s role in generating wealth inequality.
Druckenmiller argued that the Fed’s easy money policies are inflating asset bubbles, which are benefiting rich people like themselves. The inflation that will inevitably trickle down to the consumer prices will disproportionately hurt the poor. He was particularly indignant with his announcement that he would visit the homeless encampments in Washington D.C.
Here's the clip. This is epic. pic.twitter.com/TRg49e47wG
— Rudy Havenstein, Gain-Of-Function Fintwit. (@RudyHavenstein) May 16, 2021
“I don’t think there has been a greater engine of inequality than the Federal Reserve Bank of the United States in the last 11 years. So hearing the Chairman talking about visiting homeless shelters is very rich indeed.”
Druckenmiller went on to say that he has had the most successful year in 15 years in terms of his portfolio performance.
“Everyone wealthy I know is making a fortune. But why are we making it? because this guy is printing money like there’s no tomorrow”, he said, adding that “the kids in Harlem are not benefiting” from the Fed’s policy.
“…for the life of me I can’t understand why the left is so excited about money-printing when all the data shows that the people who benefit from money-printing are rich people.”
The Bursting Of The Asset Bubble
Druckenmiller went on to predict that the ultimate effect of the Fed’s easy money policy will be the bursting of the asset bubble even before inflation manifests itself, like what happened in the 2008/09 crisis.
There is no one, no group, that will be hurt more by a bust than the poor… they will be first in line to get screwed. Trust me,” he concluded.