Monday, August 1, 2016

Is the Fed About to Move to Negative Rates?

Mike Lavazza emails:
With some nations going negative do you think we will see it in the US?

Is there anything to do besides going to cash/gold/silver/stuff?

My response:

I have no doubt that the Federal Reserve has examined the legal and operational questions with regard to implementing negative rates. This, indeed, has been confirmed to me by sources that would be familiar with this type activity.

That said, given the current economic environment, I have no expectation that the Fed is going to go to negative rates anytime soon.

As far as investing, it is a very tricky period and something that needs to be monitored very closely, which I do in the EPJ Daily Alert.


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