"The committee's view on negative rates really has not changed. This is not something that we are looking at," Powell said in answer to a question during an event hosted by the Peterson Institute for International Economics, as he referenced the Fed's policy-setting Federal Open Market Committee (FOMC).
Federal Reserve Chair Jerome Powell had a clear message to interest rate futures traders on Wednesday: Bets that the U.S. central bank will pursue a negative interest-rate policy are off-base.
The Fed's top official became the latest in a parade of policymakers to brush off the notion that they might push rates into negative territory after futures tied to Fed interest rate policy expectations recently began pricing a small chance of sub-zero U.S. rates within the next year.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
