David Kelly, Chief Global Strategist at JPMorgan Asset Management, told CNBC’s “Squawk Box Asia” on Friday, the arguments for the US Federal Reserve (Fed) to bring the Fed fund rates into the negative territory make little sense.
Key quotes (via CNBC)
“There is no point … at all in going to negative rates.”
“Negative rates have not helped the Japanese economy, they haven’t helped the European economy,” in reference to the well-documented economic challenges in those places despite the adoption of such policies.
“All they do is clog up the banking system, make it more difficult for everybody to operate.”
“If you want to stimulate the economy directly, just put more money into the hands of consumers and businesses, Congress doesn’t seem to have any shyness about doing that,” adding that he expected an additional $2 trillion of stimulus “before this is over.”
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