While joining the chorus of policymakers and analysts, Goldman Sachs also rules out negative interest rates from the US Federal Reserve any time soon in its latest client note.
Key quotes
Unlikely that negative rates will be implemented in the U.S. any time soon, hurdle remains high.
But the case for them has strengthened.
Skeptical that forward guidance and asset purchases can fill the gap, barring a dramatic foray into risky assets for which the Treasury (and ultimately Congress) would need to provide a lot more equity capital.
FX implications
The news seems to have offered additional strength to the US dollar and also favored risk-tone. That said, the USD/JPY takes the bids to 107.78 whereas S&P 500 Futures reverse the early-day losses to -0.02% by the press time of the initial Asian session on Wednesday.
Share
