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Janet Yellen Says Negative Rates On The Table "If Outlook Worsened"
Zero Hedge ^
| 11/04/2015
| Tyler Durden
Posted on 11/04/2015 9:50:16 AM PST by SeekAndFind
As the market now diligently calculates the suddenly surging odds of a December rate hike, here's Yellen with a preview of what will happen once the rate hike cycle is aborted...
- YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES
- YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND
... just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.
The good news:
- YELLEN SAYS SHE DOESN'T SEE NEED FOR NEGATIVE RATES NOW
- YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT
Because when have the Fed's forecasts before ever been wrong.
TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: fed; interestrates; janetyellen; negativerates
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To: SeekAndFind
Weren’t these wizards floating rate increases as little as a month ago?
21
posted on
11/04/2015 10:14:36 AM PST
by
mykroar
("Never believe anything until it has been officially denied." - Otto von Bismarck)
To: Cowboy Bob
To: Cowboy Bob
What were Yellenâs qualifications again? She agreed to do everything and anything required to artificially prop up the economy until the White House is disinfected and we are rid of "Sparky the Wunder Prez"...
To: RckyRaCoCo
Opening the door.
Man oh man...what I would do for a 5-7% certificate of deposit. lol
I remember my grandparents retired and had all sorts of CD’s with varying maturities and amounts.
The “not so” federal reserve and the “so damn” federal gubbamint are between a rock and a hard place. Raise rates...stall the economy and add billions to the debt, keep rates at zero...kill investors, long term growth and practically guarantee negative interest rates during the next “coming” recession.
Geez, I'd rather have Beaver running the country, hell, I'd take Eddie Haskill over this bunch.
To: DannyTN
The blood transfusion is a good analogy. A quantitative easing scenario is like donating blood to yourself by drawing it out if your right arm and putting into your left arm.
25
posted on
11/04/2015 10:18:02 AM PST
by
Alberta's Child
("It doesn't work for me. I gotta have more cowbell!")
To: RckyRaCoCo
Opening the door.
Man oh man...what I would do for a 5-7% certificate of deposit. lol
I remember my grandparents retired and had all sorts of CD’s with varying maturities and amounts.
The “not so” federal reserve and the “so damn” federal gubbamint are between a rock and a hard place. Raise rates...stall the economy and add billions to the debt, keep rates at zero...kill investors, long term growth and practically guarantee negative interest rates during the next “coming” recession.
Geez, I'd rather have Beaver running the country, hell, I'd take Eddie Haskill over this bunch.
To: SeekAndFind
I’ve moved all of my money to Charles Schwab. I presume they can’t touch investment money? (Comments?)
To: SeekAndFind
Savers are already punished by zero interest rates, now they’ll be punished further by having to pay the bank to keep their money. I don’t know if it’s to force people into the stock market or to force people to spend money, but it’s a crime.
To: PAR35
No, it’s basically a storage fee for your deposits at the bank. Say you have a $10,000 savings account. They might charge you $10 a month.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Safe deposit boxes are less than half that much and you can store a lot more than $10K in one.
29
posted on
11/04/2015 10:30:14 AM PST
by
Graybeard58
(Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
To: WENDLE
It’s what it looks like when their can kicking has finally reached the end of the road. We are in very interesting times.
30
posted on
11/04/2015 10:31:12 AM PST
by
cuban leaf
(The US will not survive the obama presidency. The world may not either.)
To: Alberta's Child
A quantitative easing scenario is like donating blood to yourself by drawing it out if your right arm and putting into your left arm.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
With a second party sucking up half the blood before it gets to your left arm.
31
posted on
11/04/2015 10:33:09 AM PST
by
Graybeard58
(Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
To: SeekAndFind
If Yellen goes negative with interest rates, I hope she does so in the spring of next year. Because if she does, Trump will win in a landslide.
Trump/Cruz 2016
Trump/West 2016
(take your pick)
32
posted on
11/04/2015 10:33:13 AM PST
by
Leaning Right
(Why am I holding this lantern? I am looking for the next Reagan.)
To: SeekAndFind
Why is there a 4 point spread between the 30 year mortgage rate and the Fed rate of 0%? Historically the spread was 2%.
33
posted on
11/04/2015 10:33:31 AM PST
by
central_va
(I won't be reconstructed and I do not give a damn.)
To: DannyTN
But itâs a blood transfusion when weâre hemorrhaging. Another analogy.. putting a band-aid on a severe gunshot wound.
To: PAR35
What I buy with it is real estate and junk silver...
35
posted on
11/04/2015 10:35:59 AM PST
by
cuban leaf
(The US will not survive the obama presidency. The world may not either.)
To: SeekAndFind
Well raise your hand if you didn’t see negative rates coming. Anybody drinking the rate hike Kool Aid report to rehab. :-)
36
posted on
11/04/2015 10:38:59 AM PST
by
Georgia Girl 2
(The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
To: SeekAndFind
Yes, “courage to act” just like Bernanke.
Can’t wait until Yellen’s self-laudatory book comes out ... if there still are books by then.
37
posted on
11/04/2015 10:41:41 AM PST
by
Lorianne
To: Graybeard58
You have to buy your own insurance.
38
posted on
11/04/2015 10:42:19 AM PST
by
PAR35
To: Cowboy Bob
Protégé of Ben Bernanke ... status quo enshrined.
39
posted on
11/04/2015 10:42:46 AM PST
by
Lorianne
To: PAR35
They have taken it already. I’m waiting to retire so I can get some of it back.
40
posted on
11/04/2015 10:43:15 AM PST
by
Purdue77
("... shall not be infringed.")
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