Fed: Negative rates not impossible, but still unlikely – ABN Amro

Bill Diviney, a Senior Economist at ABN Amro, believes the chances of imposing negative rates by the Fed are not impossible, but still unlikely.

Key quotes

“While there are certain circumstances in which negative rates become a viable option for the Fed, for the time being they look unlikely – at least not before other policy options are exhausted.” 

“We think more likely options for a Fed wanting to provide more accommodation include: expanding the breadth and pace of asset purchases, stronger forward guidance, and potentially caps on bond yields.”