The case for negative interest rates has ‘strengthened,’ says Goldman—but the Fed remains opposed

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During a pandemic is it best to go negative, or stay positive?

If you ask the Fed Chair Jerome Powell and the Federal Open Market Committee (FOMC), the unanimous answer to the prospect of negative interest rates is, well, negative. But while that opposition makes it “unlikely” that negative rates will be implemented in the U.S. in the near future, economists at Goldman Sachs wrote Tuesday that, “despite the steady message, the substantive argument for negative rates has strengthened.”

Negative interest rates have long drawn skepticism from analysts (especially when looking at Europe) as a means to stimulate demand for credit

Read more    Source: fortune.com

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