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Billionaires boomed in Biden era as Fed became ‘engine of income inequality’ powered by COVID policies: expert

The nation’s wealthiest residents saw their billions grow even larger in the years following the COVID-19 pandemic due to policies from the Federal Reserve that have deepened the chasm of income inequality, economic experts report.
«If you look at the amount of federal regulation, the amount of federal taxes, if anything… the economy has gotten less friendly toward big business, and toward rich people,» economist Peter St. Onge told Fox News Digital in a May phone interview. «What’s actually been happening is that the Fed has been driving income inequality. And, I think for a long time, Republicans were sort of in denial – not just Republicans, but sort of free market types were in denial – and they didn’t want to talk about income equality.»
«I think they should absolutely talk about it, because what’s causing it is not free markets,» he said. «It’s something that I think everybody should oppose, which is government manipulation of the monetary system.»
St. Onge was reacting to data showing that billionaires’ share of the GDP increased from 14.1% in 2020 to 21.1% in 2025, as reported by Johns Hopkins University economic professor Steve Hanke.
JPMorgan Chase’s private bank estimated that the number of billionaires in the U.S. increased from 1,400 in 2021 to nearly 2,000 as of 2024, the Wall Street Journal reported in April.
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President Donald Trump, Federal Reserve Chairman Jerome Powell and former President Joe Biden (Getty Images)
The Federal Reserve is America’s central bank, which sets monetary policies and oversees banks. It acts independently, meaning it does not require approval from the president or Congress when enacting policies.
St. Onge explained to Fox News Digital that «debt is a rich man’s game» and that billionaires have benefited financially since the pandemic as the Fed worked to «manipulate interest rates» down below market value, which subsidized loans.
«During COVID, you could get a mortgage for, you know, three, three and a half percent, when inflation was running higher than that,» he explained. «You were literally being paid to borrow money, which is not a free market outcome.… So it makes loans cheap and the rich overwhelmingly borrow money.»
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The average debt for the top 5% of Americans sits at about $600,000, he said, while the average debt for the vast majority of Americans is roughly $74,000.
«That’s about a nine times difference,» he said of the data. «So if you make loans too cheap, you are giving nine times more money to rich people.… If you make loans cheap, you’re functionally giving $9 to rich people for every $1 to give everybody else.»
Assets are even more skewed, he explained, with the top 5% of Americans holding $7.8 million in assets compared to the average American’s $62,000 – notching 130 times the difference between the two demographics, he said.
«The value of a stock or even a house are based on the future stream of income, and those are all discounted by the interest rate,» he said. «And so pretty close to mechanically, if you cut interest rates in half – long-term interest rates – you are doubling the value of stocks.»

The nation’s wealthiest residents saw their billions grow even larger in the years following the COVID-19 pandemic due to policies from the Federal Reserve that have deepened the chasm of income inequality, economic experts report. (Jason Reed/File Photo/Reuters)
St. Onge pointed to the American economy in the 1970s and the early 2000s, outlining that growth «took a big step down» in the 2000s while asset values, such as housing prices and the stock market, skyrocketed.
«The reason is because, since the 1970s, the Fed has very aggressively held rates low, and so this has caused all those assets to go up. So stocks have gone up, housing has gone up. And again, those are rich men’s games. Overwhelmingly, people who own stocks are rich. Housing is even more skewed.»
«So if you’ve got a nine times difference on loans between the bottom 50% and the top 5%, and then you’ve got 130 times on assets, then the Fed manipulating rates down – they’re not doing it to make rich people rich, hopefully – but that’s sort of the consequence of doing that,» he said. «Holding long-term interest rates low is to shower money on rich people and to shower it in proportion to which they’re rich, right? So the most extreme version of that is going to be billionaires.»
FEDERAL RESERVE HOLDS KEY INTEREST RATE STEADY AMID ECONOMIC UNCERTAINTY
Economist Steve Hanke discussed how the Federal Reserve has fanned the flame of income inequality through its policies at a conference earlier in 2025 at the Mises Institute, an economics-focused think tank based out of Alabama.
«In 2020, billionaires’ share of GDP was 14.1%. Now, it’s 21.1%. The Fed increased the money supply, asset prices went up, & guess who owns the assets? Billionaires. By ignoring the money supply, the Fed is an ENGINE OF INCOME INEQUALITY,» he posted to X in April of his findings.

The Federal Reserve acts independently, meaning it does not require approval from President Donald Trump or Congress when enacting policies. (Alex Brandon/The Associated Press)
«Take the Federal Reserve’s excessive money printing during the pandemic,» Hanke said in an interview published by the think tank in April. «The transmission mechanism of monetary policy roughly dictates that changes in the money supply are followed by changes in asset prices in 1–9 months’ time, changes in real economic activity in 6–18 months’ time, and finally changes in the price level in 12–24 months’ time.»
«Thanks to the Fed’s helicopter money drops beginning with COVID, the annual growth rate of the US broad money supply peaked at 18.1% per year in May 2021,» he added. «Lo and behold, the transmission mechanism followed – the S&P 500 reached a local maximum in December 2021 (6 months later), and inflation peaked at 9.1% per year in July 2022 (14 months later).»
US JOB GROWTH COOLED IN APRIL AMID ECONOMIC UNCERTAINTY

«During COVID, you could get a mortgage for, you know, three, three and a half percent, when inflation was running higher than that,» economist Peter St. Onge noted. (Chris Delmas/AFP via Getty Images)
The result, he said, was skyrocketing wealth inequality to the tune of billionaires increasing their share of the GDP by 7.6 percentage points in just four years.
St. Onge said the Fed’s policies have been political in nature, while remarking he would welcome «naive» Democrats who bang the proverbial campaign drum of income inequality to jump onto the «end the Fed bandwagon.»
«They have a naive argument where they look at rich people and they say, ‘Hey, this is so terrible. We live in this dog-eat-dog jungle of an economy,’» St. Onge said of Democrats who campaign on income inequality. «And that is inaccurate,» he added, citing Federal Reserve policies that have amplified income inequality.
On the opposite side of the political coin, Vice President JD Vance has railed against the Biden administration and «Wall Street barons» for policies he said have hurt the working class. During his acceptance speech after officially becoming the vice presidential nominee in July, Vance said an affordability crisis is strangling the working class, while touting that the Trump administration would end economic «catering to Wall Street.»
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«Wall Street barons crashed the economy and American builders went out of business,» Vance said from Milwaukee in summer 2024. «As tradesmen scrambled for jobs, houses stopped being built. The lack of good jobs, of course, led to stagnant wages. And then the Democrats flooded this country with millions of illegal aliens. So citizens had to compete – with people who shouldn’t even be here – for precious housing. Joe Biden’s inflation crisis, my friends, is really an affordability crisis.»
The Federal Reserve Board declined comment when approached by Fox Digital regarding St. Onge’s and Hanke’s remarks.
White House,Economic Policy,Economy,Federal Reserve
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Modern Love: Un apagón hizo que lo nuestro fuera posible
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Pope Leo says he ‘can’t comment’ on 20-year sentence of Hong Kong pro-democracy activist Jimmy Lai

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Pope Leo XIV this week said he «can’t» comment on the 20-year sentence imposed on a democracy activist in Hong Kong.
«I can’t comment,» the American-born Leo told EWTN News, which covers Catholic news globally, while speaking to reporters in Italy.
He added, «Let’s pray for less hatred and more peace and work for authentic dialogue. God bless you all.»
Hong Kong publisher and democracy activist Jimmy Lai, who is a converted Catholic, was sentenced to 20 years by Beijing last month for violating their 2020 national security law, which U.S. Secretary of State Marco Rubio called «unjust and tragic.»
Pope Leo XIV this week said he «can’t» comment on the 20-year sentence imposed on a democracy activist in Hong Kong. (Christopher Furlong/Getty Images; Anthony Kwan/Getty Images)
«The conviction shows the world that Beijing will go to extraordinary lengths to silence those who advocate fundamental freedoms in Hong Kong,» Rubio said in a statement. «The United States urges the authorities to grant Mr. Lai humanitarian parole.»
The 78-year-old founded the now-closed Hong Kong-based Apple Daily in 1995, while the island was still under British rule.
Lai’s sentence closed one of the country’s most consequential national security cases since Beijing imposed the sweeping new law in 2020 in the wake of months-long anti-Chinese Communist Party protests in 2019, which were sparked by fears Beijing was eroding Hong Kong’s promised autonomy.

Lai has already been in custody since 2020. (Anthony Wallace/AFP via Getty Images)
They were followed by a sweeping security crackdown that criminalized dissent and reshaped the city’s legal system.
CHINA PHONY CONVICTION OF JIMMY LAI IS A WARNING
Lai had been arrested several times during the 2019 protests, and he was detained at his home in 2020. His newspaper was also raided at the time and closed.
He was found guilty in December of attempting to undermine national security.

Jimmy Lai supporters in Los Angeles last month. (Apu Gomes/Getty Images)
President Donald Trump said in December that he had personally urged Chinese President Xi Jinping to release Lai.
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«I spoke to President Xi about it, and I asked to consider his release,» Trump said. «He’s not well, he’s an older man, and he’s not well, so I did put that request out. We’ll see what happens.»
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After the strikes, how would the US secure Iran’s enriched uranium?

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When War Secretary Pete Hegseth was asked recently whether U.S. forces would ever move to secure enriched uranium reportedly stored at Iran’s Isfahan nuclear complex, he declined to say, citing operational security.
The exchange highlighted a question the U.S. and Israel’s air campaign alone cannot answer: even if U.S. strikes degrade Iran’s nuclear infrastructure, who would physically secure the enriched uranium, and how?
Iran is believed to possess a significant stockpile of uranium enriched to 60%, near weapons-grade. That material could theoretically be used in multiple nuclear devices if further refined.
Moving from 60% to weapons-grade 90% enrichment requires additional processing, and weaponization would involve further technical steps. But analysts say the more immediate issue is physical control of the material itself.
«If the U.S. wants to secure Iran’s nuclear materials, it’s going to require a massive ground operation,» Kelsey Davenport, director of nonproliferation policy at the Arms Control Association, told Fox News Digital.
Davenport said the highly enriched uranium believed to be stored at Isfahan appears to be deeply buried and contained in relatively mobile canisters. Securing it would likely require locating the full stockpile, accessing underground facilities and safely extracting or downblending the material.
Satellite imagery taken on Jan. 30, 2026 shows a new roof over a previously destroyed building at the Natanz nuclear site. (2026 PLANET LABS PBC/Handout via Reuters)
«It’s not even clear the United States knows where all of the uranium is,» she said, noting that the mobility of storage containers raises the possibility that some material could be moved or dispersed.
The administration repeatedly has said preventing Iran from obtaining a nuclear weapon remains a central objective of Operation Epic Fury.
«Ultimately, this issue of Iran’s nuclear pursuit and their unwillingness through negotiations to stop it is something President Trump has said for a long time needs to be dealt with,» Hegseth said.
Senior administration officials have argued that Iran sought to build up its ballistic missile arsenal in part to create a deterrent shield — enabling Tehran to continue advancing its nuclear program while discouraging outside intervention.
So far, however, the bulk of U.S. strikes have focused on degrading missile launchers, air defenses and other conventional military targets.
Experts note that dismantling missile systems may reduce Iran’s ability to shield a potential nuclear breakout. But physically controlling enriched uranium itself presents a separate and more complex challenge.

This photo released on Nov. 5, 2019, by the Atomic Energy Organization of Iran shows centrifuge machines in the Natanz uranium enrichment facility in central Iran. (Atomic Energy Organization of Iran via AP, File)
Airstrikes versus physical control
Defense officials have acknowledged that degrading nuclear infrastructure from the air is different from safely managing or securing nuclear material.
Airstrikes can destroy centrifuges, power systems and support buildings. But enriched uranium stored underground may remain intact unless it is physically secured, removed or verifiably downblended.
Striking or extracting nuclear material also carries safety risks that military planners must weigh.
If storage casks containing uranium hexafluoride gas were compromised, the material could pose chemical toxicity risks to personnel entering the site without proper protective equipment. Analysts say a conventional strike is unlikely to trigger a nuclear detonation, but dispersal of material could create localized hazards and complicate recovery efforts.
Chuck DeVore, a former Reagan-era defense official who worked on nuclear issues, argued that directly targeting the stockpile may not be a priority under current battlefield conditions.
«You don’t want to release the material into the surrounding areas and cause radioactive contamination,» DeVore said, adding that deeply buried facilities are difficult to reach from the air.
DeVore also downplayed the immediacy of a breakout scenario, arguing that further enrichment, weaponization and delivery would be difficult to execute undetected amid sustained U.S. air operations.
Even if Iran were able to further enrich uranium, he said, assembling a deliverable weapon under active military pressure would present significant technical and operational hurdles.

Trump said that the United States completed a «very successful» strike against Iranian nuclear sites at Fordow, Natanz and Isfahan, saying that Iran’s nuclear enrichment installations have been «obliterated.» (Fox News)
Still, DeVore acknowledged that long-term control of the uranium would ultimately require a political resolution inside Iran and some form of outside oversight.
What would securing it require?
Nonproliferation experts say securing enriched uranium generally involves more than military force. It requires verified accounting of the material, sustained access to storage sites and either removal or downblending to lower enrichment levels suitable for civilian use.
Davenport said internationally monitored downblending would be the safest option if political conditions allow.
«The IAEA remains the best place to go back into Iran to monitor the sites, to try to track down and account for the enriched uranium,» she said, describing downblending as a relatively straightforward technical process compared to attempting to extract and transport highly enriched material in a contested environment.
Both pathways — physical seizure or internationally monitored reduction — depend on conditions that do not currently exist.
Administration officials argue that dismantling Iran’s missile network weakens Iran’s ability to shield a nuclear breakout and reduces the immediate threat to U.S. forces and regional allies.
But suppressing missiles and controlling enriched uranium are separate challenges.
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Destroying infrastructure can slow or disrupt a program. Physically locating, accounting for and securing nuclear material requires sustained access, reliable intelligence and — ultimately — political conditions that allow it.
For now, the administration maintains that Iran will not be allowed to obtain a nuclear weapon. How the enriched uranium itself would be secured remains a question without a public answer.
war with iran,iran,nuclear proliferation,nuclear disasters
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