Negative Interest Rates Would Be Another Disaster to the Economy

The United States is in a recession, even if we'll have to wait for official confirmation at the Bureau. With tens of millions of Americans out of work and many of these jobs not coming back, we're witnessing the most unprecedented economic event of our lifetimes. I have said before that this is my generation's greatest economic challenge. And by the time it is over it will fundamentally shift almost every industry in the United States. We will see great moves by government to raise taxes and redistribute capital. But those matters are largely fiscal. What about monetary policy? Right now, the U.S. central bank has moved interest rates to zero. The April FOMC meeting was largely dedicated to preserving the Fed's benchmark rate to a range of 0% to 0.25%. That said, there is a distinct possibility that interest rates could turn negative very soon in America. I am not among the merry band of economists who embrace negative interest rates. In fact, I believe they will be disastrous. The post Negative Interest Rates Would Be Another Disaster to the Economy appeared first on Money Morning - We Make Investing Profitable . Read more... Tags: Interest Rates To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.