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Fed getting started to consider negative interest rates

Negative interest rate is counter-intuitive in the sense that savers have to pay, in stead of get, interest for their savings. Thus, this new practice could have substantial impacts on US money market, and nobody could possibly foresee the exact repercussions on the capital market and whole economy. However, negative interest rate could be a useful tool to stimulate economy when the conventional monetary policies no longer hold effects.

 
 
 

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