Feds second in command: lets not expect unlimited negative interest rate

category:Finance
 Feds second in command: lets not expect unlimited negative interest rate


When asked about whether the massive stimulus measures taken to cope with the impact of the epidemic brought about a new bubble, he said that he did not see signs of inflation in the financial market.

He also stressed that although the U.S. is still in low inflation, the Federal Reserve has not considered reducing the inflation target of 2%. As for negative interest rates, he shares the view of other senior Fed officials that this policy is not suitable for the United States. Last week, the Federal Reserve announced its interest rate resolution, saying it would keep the current policy rate close to zero, and reiterated that it would use all range of policy tools to support the U.S. economy. The Fed acknowledged that the outbreak would have a significant impact on the U.S. economy in the short term, and most officials expect policy rates to be close to zero between this year and 2022. Another senior Federal Reserve official, Boston Fed chairman Rosengren, agrees with Clarida in view of the obstacles the epidemic continues to pose to the U.S. economy. He also believes that the current measures may not be enough, and more financial and monetary support may be needed in the future. Source: Yang Bin, editor in charge of wall street news_ NF4368

He also stressed that although the U.S. is still in low inflation, the Federal Reserve has not considered reducing the inflation target of 2%. As for negative interest rates, he shares the view of other senior Fed officials that this policy is not suitable for the United States.

The Fed acknowledged that the outbreak would have a significant impact on the U.S. economy in the short term, and most officials expect policy rates to be close to zero between this year and 2022.

Another senior Federal Reserve official, Boston Fed chairman Rosengren, agrees with Clarida in view of the obstacles the epidemic continues to pose to the U.S. economy.

He also believes that the current measures may not be enough, and more financial and monetary support may be needed in the future.