Question (for anyone who knows): If the banks get paid to lend, would I get paid to borrow from them?
Courtesy of ZeroHedge. View original post here.
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?
