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Fed's Bostic: 'Not a big fan' of negative interest rates - Metro US

Fed’s Bostic: ‘Not a big fan’ of negative interest rates

Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion in Atlanta

WASHINGTON (Reuters) – Atlanta Federal Reserve bank president Raphael Bostic said he is “not a big fan” of negative interest rates.

Negative rates are “among the weaker tools in the toolkit,” Bostic said in webcast remarks, reiterating the broad view among Fed officials that the U.S. is unlikely to use a policy approach currently used in Europe and Japan.

Some traders see negative rates as a possibility as the Fed battles the economic fallout from the coronavirus pandemic, though Fed officials have generally opposed the idea.

(Reporting by Howard Schneider; Editing by Chris Reese)

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