Several big central banks around the world are currently operating under negative rates in an effort to combat low inflation, most notably the European Central Bank and the Bank of Japan where sovereign yields are now trading below zero—effectively givingAccording to Trump, the U.S. is at a disadvantage to the rest of the world because its Treasury yields and Fed interest rate remain high—though economists disagree on whether or not negative interest rates stimulate economies.
“The evidence is lacking with respect to negative interest rates and economic growth,” says RSM chief economist Joseph Brusuelas. If we follow the pattern in Japan, we would likely see benefits to autos and housing, but because the U.S. economy is so highly “financialized”, negative rates wouldn’t yield a good outcome in the long-term, he argues.
Similarly, when the U.S. looks at the European experience with negative rates, “it hasn’t stimulated growth but rather has caused strains in their financial system,” says Nicholas Sargen, economic consultant at Fort Washington Investment Advisors. In Europe, there were fears of deflation—but in the U.S., the inflation rate is hovering close to the Fed’s target, “so we’re not in that same situation and there’s less urgency,” Sargen says. “I would expect that the Fed would be clear about not considering negative interest rates. They believe it’s a mistake and question its effectiveness.
skleb1234 did the UK made a better deal than the master negotiator didnt look like trump even tryed .
skleb1234 This what Trump* wants:
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