Fed May Lack Legal Authority for Negative Rates: 2010 Memo

Updated on
  • August 2010 memo highlights possible hurdles to negative rates
  • `Not at all clear' law allows Fed to charge negative rates

Will the Fed Go Negative on Rates?

The Federal Reserve may not have the legal authority to set negative interest rates in the U.S., according to a 2010 staff memo that was posted late last month on the central bank’s website.

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