Olde Hornet
Well-Known Member
Bad policy - but the feds are following agent orange's lead.
Trump wants Fed to cut interest rates to zero or below. Here's what it could mean for you.
https://www.usatoday.com/story/mone...ero-negative-rates-would-mean-you/2293676001/
When might the Fed reduce its benchmark rate to around zero?
The central bank almost certainly would not take such a step in the short term. Fed Chairman Jerome Powell has said the U.S. economy is performing well and the Fed’s key rate is well above zero at a range of 2% to 2.25%. But Powell and other Fed officials are worried about risks that could derail the record 10-year-old economic expansion, such as Trump’s trade war with China and a slowdown in global growth.
As a result, the Fed is expected to continue to gradually trim the rate to spur more borrowing and economic activity, with markets expecting five more quarter-point cuts by early 2021, according to Bank of America Merrill Lynch. That would leave just three more decreases to get to zero, suggesting it could happen in 2021.
Trump wants Fed to cut interest rates to zero or below. Here's what it could mean for you.
https://www.usatoday.com/story/mone...ero-negative-rates-would-mean-you/2293676001/
When might the Fed reduce its benchmark rate to around zero?
The central bank almost certainly would not take such a step in the short term. Fed Chairman Jerome Powell has said the U.S. economy is performing well and the Fed’s key rate is well above zero at a range of 2% to 2.25%. But Powell and other Fed officials are worried about risks that could derail the record 10-year-old economic expansion, such as Trump’s trade war with China and a slowdown in global growth.
As a result, the Fed is expected to continue to gradually trim the rate to spur more borrowing and economic activity, with markets expecting five more quarter-point cuts by early 2021, according to Bank of America Merrill Lynch. That would leave just three more decreases to get to zero, suggesting it could happen in 2021.