According to the Wall Street Journal, banks based outside the U.S. have been unlikely beneficiaries of the Federal Reserve’s interest-rate policies, and they are likely to keep profiting as the Fed changes the way it controls borrowing costs.
Foreign firms have received nearly half of the $9.8 billion in interest the Fed has paid banks since the beginning of last year for the money, called reserves, they deposit at the U.S. central bank according to an analysis of Fed data by The Wall Street Journal. Those lenders control only about 17% of all bank assets in the U.S.
Of course, Fed policy has helped to stoke asset prices …
But not wages of anything else on Main Street.
At least The Fed is providing shelter for foreign banks. /sarc
This story reminds me of the Sorcerer’s Apprentice from the film Fantasia. Except that Ben Bernanke and Janet Yellen are Mickey Mouse.
Yellen trying to curtail quantitative easing.