What Would Negative Interest Rates Mean For Consumers And The Economy?

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President Donald Trump is a big fan of low interest rates. In fact, he’s called on the U.S. Federal Reserve to take rates into negative territory, just like Germany or Japan. In theory, the banks would pay you to borrow money. But savers would also have to pay a bank to keep their money there. So why would President Trump or a central bank want negative rates?

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What Would Negative Interest Rates Mean For Consumers And The Economy?

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32 COMMENTS

  1. Trump and his family and closest buddies are realtors, and the real estate business is the first to benefit from zero or negative interest rates. Also, when interest rates drop, the stock market indexes shoot up giving false impression of growth which is helpful in presidential elections. So, Trump is fixated on this concept for personal gratification and he knows nothing about negative interest rates and how they could impact the market in the long run.
    The true bonehead is the one who thinks that if negative interest rates worked for some countries they could work for others. The US is not Sweden which has a solid public pension system where everyone is guaranteed to have a safe and cozy retirement. Therefore it would hurt citizens to push them to spend their money rather than hoard it for the future. Also, there's virtually no demand on their money, however the USD is the world's reserve currency. Negative US rates would negatively impact the US financial system simply because it was designed from the ground up to have positive interest rates.
    It is unfortunate for Americans to be ruled by a president who pontificates about things that he does not know and cares more about himself and his cronies than the people he is supposed to be serving.

  2. If you had to utilize negative interest rates, the best way to do so is by raising the inflation rate and printing more money. A 1% interest rate with 2% inflation is a 1% negative interest rate. If they needed negative rates of 4%, all they have to do is print enough money to get inflation to 5%.

  3. Negative interest rates is a horrendous policy. Americans would launch a bank run if they had to pay to keep money in a bank.

  4. Negative interest rates is a horrendous policy. Americans would launch a bank run if they had to pay to keep money in a bank.

  5. Silliest idea I've ever heard of. It is kind of like paying the customer to take your product. So then how do you compete? The more you pay the customer to take your product the more product he will take (buy?). Turns everything upside down. Like the less you breathe the better off you will be (I kind of think not).

  6. Banks greed hold no bounds. Their only objective is to make as much money as possible . The end goal is to ripoff customers even more by charging for saving and charging for lending. Double money for these lovely Bankers .

  7. I don’t know how true it is but somebody told me that bit coin is the new currency and the likes of banks have no control over this, anybody know if this is true ?

  8. Central banks have negetive interest, you mean i can borrow money and make money i literally doing nothing? How do i borrow at negetive interest rate?

    Edit:( i will just buy gold from it , at least it will appreciate in value with inflation)

  9. S&P500 will hit 1500-1600 levels by years end. Be prepared.

    Banks already charge negative interest rates. They are simply disguised as monthly account fees. Most chequing accounts now pay 0 interest.

  10. We don't want negative interest rates. They only way it would work as the IMF stated is by getting rid of cash transactions. Cashless globalist society incoming…

  11. Can someone help me understand is this good for a small investor like me with bad credit to borrow so i can invest more?

  12. Very interesting…at 8:25 i saw a very volatile chart and then i realized its the bitcoin chart. Why throw it in the mix while the narrator is talking .cnbc trying to tell us something?

  13. Stop LYING to your viewers FAKE NEWS CORPORATE PRESS, Negative interest rates DON'T WORK, which is why Japan has had a negative growth economy for 3 decades ……morons! Negative interest rates have NEVER been done in 5000 years, suddenly the BANKRUPT INSOLVENT Federal Reserve thinks they can re-invent the wheel

  14. the journalist is so dumb, he should take a course in economics one-o-one. there are two type of interest rates, government set and market set. The government can play with the rate but if the market pushes for deflation negative interests or positive wont make a difference.

  15. believe it or not, moneys are different. some money can buy anything, some don't. when all the countries (allies) take advantage of US dollars, you need a leader knows money and has guts to fight back. now you see which one is THE real money, and watch those country's debt explode. in the end the day, the Roman citizens must be satisfied, they must have bread and colosseum.

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