Fed's Bullard: Negative rates are not a good option for US
|Fed's Bullard says that negative rates are not a good option for the US and that they will need to think about how to play QE going forward.
Negative rates probably aren't effective where they have been tried.
Bullard says that the Fed isn't battling with markets.
Key comments
''Markets believe Fed will keep rates low for quite a while.''
Bullard says ''so far so good, as far as fed policy.''
Bullard argues that the US has made substantial progress in getting virus under control and that the US daily fatalities per million have fallen to levels similar to accidental injury.
His base case is for no second wave of virus, in terms of daily rate of fatalities.
Bullard says people at risk are taking precautions and businesses are mitigating risks.
He argues that most businesses can operate safely, and succeed economically
Bullard says could wait until 1Q 2021 to assess need for the further fiscal stimulus.
Bullard says if inflation goes higher, the Fed will not react as aggressively as in past.
Market implications
There has been no market reaction to these comments.
The dollar was lifted into the end of wall Street on weaker equities as a stimulus package is a promise that never comes.
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