Fed's Kashkari calls negative interest rates 'perverse'
Reuters
Published May 25, 2016 12:26PM ET
Fed's Kashkari calls negative interest rates 'perverse'
(Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that negative interest rates, used by central banks in Europe and Japan to stimulate their economies, would only be a last resort for the U.S. central bank.
Speaking in Bismarck, N.D. at an oil industry conference, Kashkari said he expects moderate growth for the U.S. economy ahead, and called incentives from negative rates "perverse" because they could scare households and businesses away from the making the very investments they are meant to encourage. The Fed has other tools at its disposal to help boost the economy, he said.
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Written By: Reuters
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