News
        The United States is on the road of negative interest rate


 bearing in stock

if you are interested in it , Get free samples :sales@edabearings.com

This is at least the view of fund managers and strategists at the Reuters 2020 global investment outlook summit. They believe that the long-term erosive side effects of negative interest rates are far greater than the benefits of paying the government and other large debtors to borrow; the side effects of negative interest rates include punishing depositors, weakening the stability of the banking industry, and encouraging systematic financial engineering operations that may induce risks.
Thanks to the policies of Japan and the European Central Bank, about $12.5 trillion of bonds in the world, accounting for 30% of the developed world's sovereign debt, are currently in a negative yield state. Both central banks are eager to revive economic growth and boost inflation.
According to a recent blog post by BlackRock, one of the consequences of a negative interest rate is that it can lead to a negative return on investment and make the elderly suddenly lose their parents.
BlackRock and other investors said the Federal Reserve, under President Powell's leadership, is paying close attention to these risk return imbalances and is eager to avoid following suit.
"If you listen carefully to Powell and other fed representatives, they don't want to use negative interest rates," said Dan ivascyn, PIMCO group investment director.
"It's going to be on the tail end of the Fed's tools list," he said.
The European Central Bank and the Bank of Japan have both used negative interest rates to stimulate inflation and economic growth, and there has been debate about how much ammunition the Fed and other major central banks have to withstand the slowdown.


PREVIOUS:Japanese companies think consumption tax will be raised in October        NEXT:Weight of China's a shares in MSCI Emerging Market Index