Fed not considering negative rates – Powell

More fiscal support may be needed, as Fed’s lending will only be effective “for a while”, says Fed chair

Jerome Powell
Federal Reserve

US Federal Reserve Chair Jerome Powell stressed today (May 13) that the central bank was not considering implementing a negative interest rate policy, despite some market expectations of such a move.

He also said the economy could be in for a “extended period” of weak growth and depressed incomes, warning that its lending policies would only be effective “for a while” and that more fiscal support may be required.

Powell’s comments on negative rates followed market activity last week that

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