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Could Negative Interest Rates in the US Ever Happen?
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Could Negative Interest Rates in the US Ever Happen?

Hardly anybody thinks they’ll take root, pointing to their blah record overseas. Not so fast.

Larry Light
Chief Investment Officer, 2020
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The global economy is awash in negative-yielding debt instruments. Europe and Japan have been living with negative interest rates for a while, but the US Federal Reserve has held off dropping rates below zero. Financial journalist Larry Light explores the efficacy of negative interest rates and whether the United States will be the next to adopt this monetary tool. Financial professionals will find this a concise but thoughtful examination of negative interest rates.

Take-Aways

  • Negative interest rate policies seek to alter the behavior of savers and consumers.
  • The European Central Bank and the Bank of Japan impose negative rates, but the US Federal Reserve is resistant to adopting the tool.
  • The Fed might employ negative rates in extreme circumstances.

About the Author

Larry Light is the markets editor for Chief Investment Officer magazine. 

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