Fed’s Raskin Says Income Inequality Hinders Economy’s Ability to Recover

http://www.bloomberg.com/news/2011-06-29/fed-s-raskin-says-income-inequality-hinders-economy-s-ability-to-recover.html

By Jeannine Aversa and Joshua Zumbrun - Jun 29, 2011 1:00 PM ET

Federal Reserve Governor Sarah Bloom Raskin said the financial inequality resulting from stagnating incomes for most Americans and rapid growth in wealth for the richest 1 percent is hindering the U.S. economic recovery.

“This inequality is destabilizing and undermines the ability of the economy to grow sustainably and efficiently,” Raskin said today to a forum in Washington sponsored by the New America Foundation. The disparities help “drag down maximum economic growth and are anathema to the social progress that is part and parcel of such growth,” she said.

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