- U.S. Federal Reserve policymakers say they will do what it takes to cushion an economy crushed by the widespread lockdowns aimed at slowing the coronavirus spread, but there’s one thing they probably won’t do: take interest rates below zero.
Last week, traders in futures tied to the Fed’s policy rate began pricing in — for the first time ever — a small chance of negative U.S. interest rates next year. On Monday they had mostly retreated from those bets, though contracts for October 2021 did reflect an expectation for below-zero rates. And in the current crisis, they have said that negative rates would be particularly ineffective because it’s not the price of money but rather government restrictions and concern for public health that are keeping people and businesses from spending money.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Despite Recent Bets, Fed Isn’t Likely to Consider Negative Interest RatesFederal Reserve officials are unlikely to consider using negative interest rates to stimulate economic growth after concluding the tool’s clear costs outweigh its uncertain benefits. I’m sure printing money out of thin air won’t have any negative effects in the near future either.
Source: WSJ - 🏆 98. / 63 Read more »
Don't fight the Fed, join them with these ETFs the central bank could be buyingNew for subscribers: Don't fight the Fed, join them with these ETFs the central bank could be buying Check out CNBCPro for a free trial. Pro LOL, everything is fine.. Pro 'Don't fight the Fed' has become a mindless meme that people repeat now, makes we wonder if it's true in all cases...probably not Pro Wait till the increase in taxes comes ...
Source: CNBC - 🏆 12. / 72 Read more »
Fed jump-start leaves CLO buyout motor sputteringThe vehicles that buy most leveraged loans are suffering as downgrades saddle them with too much ropey debt. The Federal Reserve’s lending facilities will help – but not enough to gin up much appetite for new loans. Private equity dealmaking could be stuck in the slow lane.
Source: Breakingviews - 🏆 470. / 51 Read more »
The Fed thawed debt market and big companies built a $500 billion war chest to fight the virusA $2.25 billion United Airlines debt offering failed to fly last week, but that does not signal trouble for others issuing corporate debt. blackrock will buy junk bonds through the FED, breaking the established law. the debt you are going to pay your friend on foot, not them, they are going to get richer article gotta be read, well Why was Tyler Mathersion able to get a haircut ? I guess he’s special. Him and his 14 yr old son.
Source: CNBC - 🏆 12. / 72 Read more »
Fed's Evans sees no inflation risk, and no use for negative ratesChicago Federal Reserve Bank President Charles Evans on Monday said he sees interest rates staying near zero for 'quite some time' to support the economy, but does not expect to resort to negative interest rates as central banks in other countries have done. Sure what a complete and utter you know what...
Source: Reuters - 🏆 2. / 97 Read more »
Fed's Bostic: 'Not a big fan' of negative interest ratesAtlanta Federal Reserve bank president Raphael Bostic said he is 'not a big fan' of negative interest rates. Good.
Source: Reuters - 🏆 2. / 97 Read more »