Negative rates would not be appropriate for US economy, so he says!!

[S2007S]

Powell says Our economy is in a strong position

Has Growth
A strong consumer sector with
Inflation a bit below target

Yep so why powell are you cutting rates 3 times to 1.5%

One full blown recession and those 1.5% fed fund rates become 0%. No way now to avoid negative interest rates, actually impossible when the next collapse and economic deep recession comes.

 

[Overnight]

Powell says Our economy is in a strong position

Has Growth
A strong consumer sector with
Inflation a bit below target

Yep so why powell are you cutting rates 3 times to 1.5%

One full blown recession and those 1.5% fed fund rates become 0%. No way now to avoid negative interest rates, actually impossible when the next collapse and economic deep recession comes.

...

He admitted in his testimony this past week that the Fed made a mistake, and that there is a new normal with today's economy regarding inflation that they did not forsee. And that it does not require rates as high as they were.

I think they should have stopped when they went from .25% (which was there for like 6 years? 7? Good ol' Yellen) to 1.00%.

That would have been enough, no?

There is no NEED for a recession if everything is done with moderation. Slowly. Not knee-jerk OMG panic.