Gary Schollsberg, a global strategist at Wells Fargo, said the U.S. Federal Reserve. Negative interest rates are unlikely to be introduced in the short term.
These forecasts were sent to CNBC yesterday through an interview with Schollsberg.
“The Federal Reserve will do everything to maintain liquidity”
Negative interest rates currently seem unlikely. Europe has already tested the idea with mixed results, and Schollsberg argues that there are too many “unintended consequences” for negative interest rates.
Negative interest rates would effectively mean that the Federal Reserve would charge fees for money to commercial banks. However, this “fee” would probably also be passed on to consumers.
BeInCrypto reported last year that German banks have been playing with the idea for some time.
If negative interest rates become the “new normal”, thencould prove to be an appropriate hedge and would be a natural catalyst for the public to move away from mainstream banking.
With Bitcoin’s third cut in half behind us, BTC currently has a lower inflation rate than the other Fiat currencies. Annual emissions are currently at 1.8% of half the global average.
If the US Federal Reserve introduced negative interest rates, it would be unprecedented. Although it could boost consumer spending in the short term, its consequences could be far more serious than economists and policy makers recognize. Fortunately, there are new alternatives to traditional banking that offer us a way out.
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