Powell Says Fed Not Looking to Use Negative Rates

The video discusses two main points: the effectiveness of existing tools and the mixed evidence on negative rates. It highlights the potential positive and negative effects of negative policy rates on financial intermediation and public rates. The discussion concludes with confidence in having the necessary tools and understanding asset purchases better.

What is one of the main tools mentioned that has served well in the past?

• Newly developed policies

• Negative interest rates

• Existing effective tools

• Public rate adjustments

What is a potential negative effect of negative interest rates?

• Increased employment

• Higher public rates

• Financial intermediation issues

• Improved asset purchases

What is a possible positive effect of using negative policy rates?

• Increased savings

• Reduced policy space

• Higher inflation

• Lower public rates

What does the speaker express confidence in understanding better?

• Public rate adjustments

• Financial intermediation

• Asset purchases

• Negative interest rates

What does the speaker believe they will have at full employment?

• Increased negative rates

• Policy space on rates

• Reduced asset purchases

• Limited policy space