🖤 Donations of all sizes power our public service journalism Give Now

Could U.S. interest rates go negative like Europe’s?

Meghan McCarty Carino Sep 13, 2019
HTML EMBED:
COPY
Matt Cardy/Getty Images

Could U.S. interest rates go negative like Europe’s?

Meghan McCarty Carino Sep 13, 2019
Matt Cardy/Getty Images
HTML EMBED:
COPY

The European Central Bank announced a big new stimulus package for the eurozone earlier today. The ECB is restarting its quantitative easing program to buy bonds again, and pushed interest rates even deeper into the negative. The bank cut rates to a record low of -0.5%. The idea is to boost the economy by spurring lending and spending above saving. The move caught the eye of President Trump, who urged the Fed to follow suit. But experts say the conditions in the U.S. don’t warrant negative rates, and they probably wouldn’t do what Trump said he wants: to weaken the dollar to help U.S. exports.

Click the audio player above to hear the full story.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.