NEW YORK, April 18 (Reuters) - Easy money policies are bringing some relief to lower-income Americans who were hard-hit in the recession, and the easing could become increasingly potent as the housing market recovers, a top U.S. Federal Reserve official said on Thursday.
In a speech on equality and the U.S. economy, Fed Governor Sarah Raskin backed the policy accommodation and argued it would continue to help the overall economic recovery. But the long-running trend of inequality and stagnating wages in the United States has slowed that rebound, she said.
'The accommodative policies ... and the concerted effort we have made to ease conditions in the mortgage markets will help the economy continue to gain traction. And the resulting expansion in employment will likely improve income levels at the bottom of the distribution,' Raskin said in prepared remarks to the Hyman P. Minsky conference.
'However, given the longstanding trends toward greater income and wealth inequalities, it is unlikely that cyclical improvements in the labor markets will do much to reverse these trends,' she said.
(Reporting by Jonathan Spicer and Leah Schnurr; Editing by Chizu Nomiyama) Keywords: USA FED/RASKIN
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