Economics
Fed Officials Push Back On Market View Rates May Go Negative
- ‘Negative rates is one of the weaker tools in the tool kit’
- Fed’s Bostic says buying stocks also unlikely in near term
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The Federal Reserve, which cut its primary interest rate to near zero March 15 in the face of the economic crisis prompted by the coronavirus, isn’t anticipating the use of negative rates that have been tried in Europe and Japan, two Fed presidents said Monday.
“At best, we’d have to study it more, but I don’t anticipate that being a tool we would be using in the U.S.,” Federal Reserve Bank of Chicago President Charles Evans said from Chicago.