Fed's Williams: Negative rates not the right tool to be used right now


"The FOMC looked at negative interest rates very closely and the view is that it is not the right tool to be used right now," New York Federal Reserve Bank President John Williams said on Thursday.

Additional takeaways

"Construction, retail and other core parts of the economy may come back quicker."

"Expecting a rebound in the economy in second half of the year, the question is how strong."

Markets seem to be functioning well and other indicators looking favorable but the Fed is on alert."

"It's going to take a while for the economy to get back to full strength."

"The Fed's goal is to keep interest rates low to support economy but not have them go negative."

"There is a lot of uncertainty in the economy but the biggest one is what happens with the virus."

Market reaction

The US Dollar Index extended its rebound in the last minutes and was last seen gaining 0.32% on the day at 99.48.

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