[smallnamespace]

The proper operation of monetary policy (which you can verify by cracking open any macroeconomics 101 textbook) calls for the central bank to control interest rates via the creation and destruction of money, such that the interest rate in the market for money (via fixed income instruments) always remains at an equilibrium rate.

The Fed failed to effectively create money in ‘08 and afterwards, and instead settled for more or less directly controlling the price of fixed income instruments. This is bypassing the textbook cause and effect mechanism and is indeed the equivalent to a price control in the fixed income market.

You can see negative effects by realizing that price controls always widen the gap between the marginal borrower vs. non-borrower — in a ‘true low rates’ scenario, loans would’ve been freely available at the low rate, but in post-Recession US, loan rates were low, but only strong borrowers could get liquidity. That directly widens the gap between the haves and have-nots, and was a direct result of Fed policy.

[xapata]

Asset inflation is exacerbating inequality, but to say it's the "primary cause" isn't supported.