Federal Reserve Chair Janet Yellen didn’t rule out using negative rates in a future crisis but emphasized that they would be adopted as a last resort.While it would be cool to see a -25% APR on my house mortgage (which is adjustable) that's not likely. And negative interest rates prettty well require abolishing cash.
In written responses Thursday to questions from Representative Brad Sherman, Yellen said that “while I would not completely rule out the use of negative interest rates in some future very adverse scenario, policy makers would need to consider a wide range of issues before employing this tool in the United States, including the potential for unintended consequences.”
Thursday, May 12, 2016
How Far Negative Do Interest Rates Have to Go Before My Mortgage Payment Goes to $0?
5/12/16 Bloomberg Markets: