09/19/2019

Fed Lowers Interest Rates Again

Chairman doesn't see the Fed ever using negative interest rates

Federal Reserve Chairman Jerome Powell shut down the notion that the Fed would use negative rates as a tool to combat future economic weakness.

“I do not think we’d be looking at using negative rates, I just don’t think those will be at the top of our list,” Powell told reporters on Wednesday after the Federal Open Market Committee meeting, when asked about what tools the Fed would consider using if economic weakness continues.

Powell said the Fed entertained the idea of negative interest rates during the financial crisis, but it opted against it. Instead, the central bank used a lot of aggressive forward guidance and large-scale asset purchases.

Please select this link to read the complete article from CNBC.