Pretty much every central bank in the world and has numerous measures in place in order for the economy to support it during the financial crisis of the corona virus. The Federal reserve has been no exception to the rule, and what He relates to, they may even go a step further.
Interest rate is lower
As President He will exercise pressure on the Fed chairman Jerome Powell, to set the interest rate to decrease to zero, and as the U.s. dollar weakened.
As long As other countries are receiving the benefits of Negative Rates, the states should also accept the “free GIFT”. The Big numbers!
— Donald J. Trump (@realDonaldTrump) September 12, 2020
As long as the other nations of the benefits of negative rates, to enjoy, to the United States, this is a gift to accept. A large number of!
He expressed his support for the negative interest rates that, after the deputy governor of the Bank of England in london, said that for many years was not taken into consideration. This will enable them to learn from the Bank of Japan and European Central Bank, Japan, and Europe are already in a negative interest rate environment.
Negative interest rates for consumers
The negative rates to punish the banks to hoard the money, and they are, therefore, encouraged to spend money or to borrow it. This policy trickles down to the consumer, thereby saving money in a bank account is no longer of interest.
Negative interest rates may cause borrowers are paid to borrow money through the lender. If the central bank’s interest rate is less than zero, need money lenders, such as banks, central bank money, reserves, have to keep up. The banks could cost more than their clients, be able to pass it on, and compensation for positive balances in the account to be able to bring in.
Some of the economists are of the view that the negative interest rates that a new life can be blown into the stagnant economies in which money can be invested or spent. Other economists think, correctly, that an economic downturn due to the negative interest rate policy. That is also confirmed Warren Buffett.
“We are doing the things that we have in the final result, don’t know,” said Buffett at the annual meeting of Berkshire Hathaway about the possibility of negative interest rates in the United States of america. “This is the most interesting question I have ever been in, the economy, and have fun.’
Fed is acting differently than normal
The tweet, from Home ahead of the speech by Federal reserve chairman Powell’s today. It is expected that he will not have a negative rate of interest will be introduced. Still, investors here are not fully convinced of it.
Paul Ashwort, of Capital Economics, said that the Federal reserve is now the name for it is under pressure from the market to do.
Bitcoin plays a different game
In the meantime, there is a coin with a return policy. It is the policy of bitcoin is in stark contrast to the policies of both the euro and the us dollar. Bitcoin is a deflationary cryptocurrency, and the issue of transparency.
The day before yesterday suffered the bitcoin is in its third halving, the number of new bitcoins, it was cut in half. That is, you could have been in the 2009 forecast. And halveringen will continue to voortdoen, each and every 210.000 blocks to get a bitcoin is in a stronger stock-to-flow ratio.
By way of comparison, a negative rate of interest, and the printers filled with infinite paper and ink fiatvaluta, it is easy to predict the more valuable it is.