Negative Interest Rates

In the U.S., the Federal Reserve adjusts the level of short-term interest rates as their primary way of tightening or relaxing their monetary policy. Recently, unprecedented events have caused extreme volatility in the economy. The Fed has used additional methods of providing liquidity to the market to get the U.S. back to full employment and maintain a modest level of inflation, but what if it is not enough? Many investors fear the only arrow that the Fed has left in their quiver is to introduce negative interest rates. So, what do negative interest rates really mean? We invite you to watch the short video below to view our simple explanation of how negative interest rates work in today's economy.

 

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