You think we’ll ever see negative interest rates here?
Are there ANY already?
If you adjust for inflation, bond yields are effectively negative across much of the yield curve.
the great fear is that US interest rates could turn nominally negative. We’re still a long way from there.
But.
The fed has a mandate to keep the economy moving. If the trade war pushes the USA into recession—then the fed will be forced to cut interest rates. And cut them again. The fed just lowered interest rates for the first time since 2008. That significant considering a look out the side window shows the US economy booming.
How far this will go is anyone’s guess.