Context:

In the years following the COVID-19 pandemic, the wealth of billionaires in the United States has surged, with their share of GDP rising from 14.1% in 2020 to 21.1% in 2025, facilitated by Federal Reserve policies that have exacerbated income inequality. Economist Peter St. Onge argues that the Federal Reserve's manipulation of interest rates has disproportionately benefitted the wealthy, as low rates make loans cheap, enabling the rich to borrow extensively and increase their asset values. This policy environment has resulted in the number of billionaires increasing significantly, from 1,400 in 2021 to nearly 2,000 by 2024, as reported by JPMorgan Chase’s private bank. Critics like Steve Hanke highlight that the Federal Reserve's actions, including the increase in money supply during the pandemic, have driven asset prices up, which primarily benefits those who already own substantial wealth. The debate continues as political figures like Vice President JD Vance criticize these policies for harming the working class while Democrats focus on addressing the resulting income inequality.

Dive Deeper:

• The Federal Reserve's policies during the COVID-19 pandemic have significantly increased billionaire wealth, with their GDP share jumping from 14.1% to 21.1% between 2020 and 2025, according to economist Steve Hanke.

• Economist Peter St. Onge criticizes the Fed's low-interest-rate policies, arguing they have effectively subsidized loans for the wealthy, allowing them to borrow more and increase asset values, thereby widening the income gap.

• The number of billionaires in the U.S. rose from 1,400 in 2021 to nearly 2,000 by 2024, as low interest rates and increased money supply during the pandemic disproportionately advantaged the wealthy, facilitating asset accumulation.

• Steve Hanke contends that the Fed's expansive money supply policies accelerated asset price inflation, benefiting those with existing wealth and contributing to a significant rise in income inequality.

• Vice President JD Vance has criticized the Biden administration and financial elites for policies that he argues have hurt the working class, creating an affordability crisis as wages stagnate and housing becomes more competitive.

• Peter St. Onge notes that the Fed's long-term low-interest-rate strategy has historically increased asset prices, disproportionately benefiting the wealthy, who are more likely to own stocks and real estate.

• The Federal Reserve's approach during the pandemic, including significant money printing, has been a focal point of debate on its role in fostering economic disparity, with some calling for reevaluation of its policies to address widening inequality.