Research: Are negative rates a Fed option?

View in your browser

Will negative rates in Europe, Japan influence Fed’s monetary policy?

By Blu Putnam, Chief Economist and Erik Norland, Senior Economist, CME Group

Not the Gift That Keeps on Giving

  • Negative rates in Europe, Japan have not spurred growth as intended
  • They also failed to boost inflation to levels targeted by central banks
  • In some cases, negative rates inadvertently strengthened currencies
  • Eurozone, Japan, Sweden, Switzerland have negative rates in place
Read article

An Option in the Fed’s Playbook?

  • Europe, Japan banking on negative rates to bolster growth
  • Critics say the measure is a tax that weakens lending, hurts economy
  • European banks are scaling back; German, Japanese growth lackluster
  • Do negative rates signal central banks’ pessimism about economy?
Watch video