On Wall Street, investors are already betting on negative interest rates in the United States. So far, central bank chief Powell has wanted nothing to do with it – but US President Trump has. He makes that clear again.
US President Donald Trump has spoken out again for negative interest rates. Trump said he likes key interest rates below zero percent. He was convinced that the US should have negative interest rates. He is therefore of a different opinion than US Federal Reserve Chairman Jerome Powell, who is not aiming for negative interest rates. Despite the differences, he had the impression that Powell's performance as a central bank boss had improved. Powell recently did a "very good job," Trump added. The Republican had previously criticized Powell's work several times. Trump has repeatedly called on the monetary authorities to introduce negative interest rates. Investors on the stock exchanges are now starting to bet on rates below zero percent. In monetary policy, negative interest rates are seen as an unconventional tool to boost bank lending to the economy in times of crisis. The Federal Reserve had already lowered its key bank money supply rate to zero to 0.25 percent and launched extensive trillion-dollar economic support programs.