‘Negative interest’ rates? EconoMeter panel weighs in
from San Diego Union Tribune’s EconoMeter panel.
Q: Will the Federal Reserve begin charging “negative interest,” as Japan is doing, to stave off a recession and deflation?
Bob’s Answer: No.
Japan has been fighting deflation since the 1990s, while the U.
S. has been trying to boost an economy that has been moving along at a moderate pace. Japan is trying desperately to get to 2 percent inflation while the U.
S. is growing at approximately 2 to 2.5 percent. The European Central Bank tried this in June 2014 with no success and the U.
S. will not follow suit.
Read more answers here.