Coming soon to a bank near you: negative interest rates?
Former Treasury Secretary and one-time favorite to succeed Ben Bernanke as Fed Chair has called on the Fed to push interest rates below zero in order to “stimulate” the economy. Saint Louis Federal Reserve Chairman James Bullard has also suggested the Fed “study” this idea. Of course, all negative interests rates would do are hurt savers, further drive down the value of the dollar, and increase inflation.
The only way to discover if the Federal Reserve is serious about negative interest rates is to pass Ron Paul’s Audit the Fed (S. 209), so if you have not yet please contribute to Campaign for Liberty’s Audit the Fed money bomb.