10/21, 11:22 PM (Source: TeleTrader)
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Fed's Bullard: Negative rates not good option for US

Federal Bank of St. Louis President James Bullard said on Wednesday that the Fed's policy amid the coronavirus pandemic has been "so far so good" and that he doesn't believe the central bank should introduce negative interest rates.

Bullard noted that markets "believe the Fed will keep rates low for quite a while" and added that the Fed will not "act as aggressively as in the past" if inflation goes above 2%.

In August, Fed Chair Jerome Powell announced a change in the bank's policy, noting it will target a 2% inflation rate on average over time but will "likely aim to achieve inflation moderately above 2% for some time."

Breaking the News / NP