Fed’s Mester: Negative rates not a tool we think we would use

Commenting on the Fed’s policy outlook, “negative rates is not a tool we think we would use,” Cleveland Federal Reserve President Loretta Mester told CNBC on Wednesday. 

“Negative rates is not a part of the active discussion,” Mester further added. “Would be a lot of problems with negative rates. The Fed is not trying to stand in for the real economy.”

Market reaction

The US Dollar Index inched higher on these comments and was last seen gaining 0.22% on the day at 100.23.