Dallas Fed Bank President Robert Kaplan expressed he objection to negative interest rates, for the effects it would have on the financial system, “on intermediaries, on money markets”.
“I would be against negative interest rates,” Kaplan told CNN International. “I’m a skeptic whether negative interest rates would actually be helpful, or whether the help would be outweighed by the harm it would do to the financial sector.” “So I personally am not a fan or a proponent of negative interest rates.”
Minneapolis Fed President Neel Kashkari also said policymakers have been pretty unanimous opposing negative interest rate. While he prefer not to say never on negative rates, there are other things Fed could do first. On the economy, he reiterated the view that “we are not going to fix the economy until we get our hands around the virus.” “We might be in this for a long time.”
