Negative interest rates could be needed for a V recovery, Fed economist says

If the banks start charging to keep an open account, I am going to have to move a lot of cash.

  • Policymakers will need to consider negative interest rates in getting the U.S. economy back to health, St. Louis Fed economist Yi Wen said in a paper.
  • Most Fed officials have doubted they would go negative like Japan and parts of Europe.
  • The analysis is not binding in any way on the Fed, and Chairman Jerome Powell recently said he doesnt see below-zero policy rates as an appropriate tool.