(CNBC) — Federal Reserve policy is creating "economic distortions" resulting in a transfer of wealth to the people who need it least, according to an analysis from a prominent Wall Street bond expert.
A stock buyback frenzy that has boosted the market and put money in the hands of those seeking short-term gains is but one of the less-desirable Fed benefits cited by BlackRock's Rick Rieder in a blog post on the firm's website.
"The global economy is witnessing a massive redistribution of wealth and income with borrowers, equity shareholders and short-term investors benefiting; and savers, bondholders and longer-term investors being placed at risk," wrote Rieder, chief investment officer of BlackRock's Fundamental Fixed Income division and co-head of Americas Fixed Income.