NEW YORK (TheStreet) -- This week's earnings reports illustrate how Federal Reserve policy helps Wall Street, while Main Street struggles.
The four "too big to fail" banks have reported better-than-expected results and they clearly benefited from low interest rates and by booking profits on the $85 billion of U.S. Treasuries and mortgage-backed securities sold to the New York Fed Open Market Trading Desk each month under QE3 and QE4.
The big banks continue to have hold ratings, but with their huge balance sheets, have the accounting flexibility to consistently beat Wall Street estimates.
Meanwhile, consumer staples companies are missing on the revenue line because of the higher cost of living on Main Street. Consumers have cut spending even on necessities.
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