Negative Rates Bets Are Going Global to Ire of Central Banks
- Fed’s Powell pushes back, but market won’t take no for answer
- U.K. traders join U.S., New Zealand pricing in sub-zero rates
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Traders around the world are forging ahead with bets on negative interest rates, even as central banks mount a vocal counteroffensive.
Fed funds futures reflected bets for a negative U.S. policy rate for a fifth day, despite Federal Reserve Chairman Jerome Powell’s attempts to challenge the prospect Wednesday with assurances that such a move is unlikely. While expectations for a shift moderated slightly after Powell’s speech, traders are still prepared for a move during the first half of next year.