Fed is unlikely to consider negative interest rates – WSJ

Dhwani Mehta FXStreet

The Wall Street Journal (WSJ) carried an opinion piece over the weekend, citing that the US Federal Reserve officials are unlikely to consider using negative interest rates.

Additional quotes

“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.

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

there is little political support for the policy in the US.”

There is no point in the Fed going to negative interest rates – JP Morgan

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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