Can the Fed avoid negative interest rates in the next downturn?

The Federal Reserve managed to avoid turning to negative interest rates through the pandemic-induced recession of 2020. But if the economy faces another downturn, will the central bank be backed into short-term borrowing rates below zero?

In a UBS survey of almost 30 central banks around the world, 21% of respondents said they could see the Fed turning to negative interest rates if needed.

The concern: With U.S. short-term rates yet again backed up at near-zero, a Fed that may be slower to…


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