Yellen Says Negative Rates On The Table "If Outlook Worsened"

[flowers]

http://www.zerohedge.com/news/2015-11-04/yellen-says-negative-rates-table-if-outlook-worsened

As the market now diligently calculates the suddenly surging odds of a December rate hike, here's Yellen with a preview of what will happen once the rate hike cycle is aborted...

    YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES
    YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND

... just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.

The good news:

    YELLEN SAYS SHE DOESN'T SEE NEED FOR NEGATIVE RATES NOW
    YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT

Because when have the Fed's forecasts before ever been wrong.

[mountaineer]

I recently attended a financial outlook seminar where some folks who follow the Fed predicted that rates won't rise until March 2016. I don't know, but it seems to me the current rates are pretty darn low.

[Scottftlc]

Negative rates?  That's where people pay you to take their money.

So what does that say about the value of your currency?

[GourmetDan]

Negative rates?  That's where people pay you to take their money.

So what does that say about the value of your currency?

Another way to look at 'negative rates' is that the bank will CHARGE YOU to keep your money there...

[sinkspur]

Zerohedge is the most hysterical site on the web. NOTHING predicted there EVER comes to pass.

[GourmetDan]

 
REUTERS: Fed would consider negative rates if economy soured - Yellen

"Nov 4 The Federal Reserve would consider pushing interest rates below zero if the U.S. economy took a serious turn for the worse, Fed Chair Janet Yellen said on Wednesday."

""Potentially anything - including negative interest rates - would be on the table. But we would have to study carefully how they would work here in the U.S. context," Yellen told a House of Representatives committee."

"This would happen if the economy were to "deteriorate in a significant way," she said, adding that she believed negative rates "would have some at least modest favorable effect on banks' incentives to lend." (Reporting by Jason Lange; Editing by James Dalgleish)"