The global financial crisis shed new light on the role that central banks play for financial stability. In response to the financial turmoil, central banks took radical action to stabilize the financial system, by providing liquidity to banks and buying up financial assets. Following these emergency measures, central banks, financial regulators and governments implemented new macro-prudential tools to reduce the risks of future imbalances for financial stability. To design effective macro-prudential policies, central banks and financial regulators must first understand the roots of financial instability. In this context, a growing body of research has highlighted the role of income and wealth inequality as potential factors of instability. This blog briefly surveys the theories and empirical evidence on this link. It then argues that central banks should keep an eye on inequality to spot potential warning signals of financial crises. They should also mitigate potential feedback loops between macro-prudential policy, inequality and financial stability that may weaken the resilience of the financial system.