Despite Recent Bets, Fed Isn’t Likely to Consider Negative Interest Rates

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Fed leaders see negative interest rates as a very last resort, worrying they would have harmful effects on financial markets and the banking industry

Federal Reserve officials are unlikely to consider using negative interest rates to stimulate economic growth in the current coronavirus-induced downturn after concluding the tool’s clear costs outweigh its uncertain benefits.

The topic resurfaced Thursday after investors in futures markets began betting the Fed’s benchmark federal-funds rate would go below zero by year-end, which sent yields on two-year Treasury securities to an all-time low. Rates rose slightly on Friday, and futures contracts implied investors expected...

 

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ENCOURAGE SAVINGS WITH ASSURED INCOME, INVESTMENTS WITH SAFETY, INCOME, LIQUIDITY FOR LONGER PERIOD, STRONGER ECONOMY THAN SPENDING FOR SHORTER PERIOD GAINS. ALSO LENDING FOR SPENDING IS MORE DANGEROUS TO ECONOMY. 'SAVE FIRST, SPEND NEXT', 'SAVE & INVEST' SHOULD NEW CONCEPTS.

So now America is following nonsense european Monetary policy? So much leadership!

They would destroy what this country has worked toward since our dawn.

It hasn't worked in Japan or Europe only an idiot would think to try it here

Federal govt. leaders see saving lives as a very last resort, worrying it would have harmful effects on financial markets and the banking industry

How do I borrow at a negative interest rate? I'll take a billion dollars, please.

In the first place, it is the limit of free capitalism. Fake work should be sent off.

I’m sure printing money out of thin air won’t have any negative effects in the near future either.

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