How Might Negative Interest Rates Affect the U.S. Stock Market? What Investors Need to Know
By Seedly • May 20, 2020
We are living in strange times. Imagine an upside-down world where banks give you money to take loans and charge you to save money. This might happen if Donald J. Trump, the president of the United States has his way. Last Tuesday (12 May 2020), Trump tweeted this:
Source: Donald J. Trump | Twitter Trump’s renewed call for the US Federal Reserve (the Fed) comes after the central bank cut its benchmark interest rates to near-zero back in March. However, the US Federal Reserve Chairman Jerome Powell came out in an interview to say that the Fed will not implement a negative interest rate monetary policy to fight the fallout from the COVID-19 pandemic. There’s no telling what might happen, but according to Reuters, the Fed-funds futures market has already started pricing in negative interest rates. In fact, this monetary policy has been implemented in...
