Economics
With Next Recession Looming, Central Banks Better Make Peace With Negative Rates
- With U.S. economy due for pullback, analysts ponder stimulus
- Supply of debt with negative yields surged in the past month
Reinhard Cluse, chief European economist at UBS, and Iain Stealey, portfolio manager at JPMorgan Chase Asset Management, discuss the potential need for the return of negative interest rates. They speak with Bloomberg's Tom Keene on 'Bloomberg Surveillance.' (Source: Bloomberg)
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Negative interest rates are back in the spotlight.
Investors and analysts are redoubling their warnings that with global borrowing costs already so low, central banks will need to be prepared to cut interest rates deep into negative territory in the next economic downturn. The message is taking on urgency as anxiety builds that the U.S. is nearing the end of its current economic expansion cycle.