The May jobs report shows an economy in full-blown healing, but also highlights the "dirty little secret" that the Federal Reserve's monetary policy has exacerbated income inequality in the U.S., Pimco chief economist Paul McCulley said Friday.
"One of the blights on our economy right now and our society is income inequity. And I wouldn't say the Fed is responsible for it, but it is a consequence of the fact that we had to rely heavily on monetary policy to get out of the liquidity trap," McCulley said on an interview on "Closing Bell."
The May jobs report showed a gain of 217,000 jobs—bringing the number up to a pre-recession level. Unemployment held steady at 6.3 percent and wages rose modestly.
"We're not seeing really robust, even modest, increases in real wages for those who only have labor to bring to the party," McCulley said.