FEDs test negative rates

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As interest rates turn negative around the world, the Federal Reserve is asking banks to consider the possibility of the same happening in the U.S.

In its annual stress test for 2016, the Fed said it will assess the resilience of big banks to a number of possible situations, including one where the rate on the three-month U.S. Treasury bill stays below zero for a prolonged period.

Not because they think the economy is in trouble or anything.

"This scenario does not represent a forecast of the Federal Reserve," the central bank said. It also assumes "that the adjustment to negative short-term rates proceeds with no additional financial market disruptions."

I’m sure it means nothing. 

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One Response to “FEDs test negative rates”

  1. Homeowner’s Net Worth is 45x Greater Than a Renter’s | Mortgage Geek | Jason R. Richardson Says:

    […] FEDs test negative rates […]

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