Economics
The Probability of Negative U.S. Rates Is on the Rise
- Examples of five other central banks cited as U.S. precedent
- Probability of negative Fed rate climbs to about 13%
Is a Fed March Rate Hike Off the Table?
This article is for subscribers only.
Global central banks have opened the door to negative U.S. interest rates, in Wall Street’s view.
After the Bank of Japan cut some rates below zero last month to spur growth and inflation, strategists are weighing the Federal Reserve’s options in case of a crisis. If the world’s biggest economy weakens enough that traditional policy measures don’t help, the Fed may consider pushing rates below zero, according to Bank of America Corp. and JPMorgan Chase & Co.