Everyone is wondering how this will affect savers vs spenders, is this really going to happen, and how will this affect finance down the road. Great article by Smaulgld:
Fed Chair Janet Yellen Is A Supporter of Negative Interest Rates
When Janet Yellen was first appointed to the Chair of the Federal Reserve we noted that Janet Yellen was a supporter of negative interest rates. In “Janet Yellen and Negative Interest Rates” we re-published her 2010 comment in support of negative interest rates:
“If it were positive to take interest rates into negative territory I would be voting for that”
In “It’s Yellen!” we predicted:
When Ms. Yellen becomes the Fed Chair a more than decade long progression of dysfunctional monetary policy will be complete.
We will have gone from the low interest rate policies of Alan Greenspan, to the no interest rate policies of Ben Bernanke to the negative interest rates of Janet Yellen.
Since Ms. Yellen’s appointment she has presided over a Federal Reserve that tapered and ended the third quantitative easing (QE) program started by her predecessor, Ben Bernanke. Since the official end of QE3, Ms Yellen and her Fed cohorts have been threatening to raise/normalize interest rates. To date they have not done so.
Recently, however, some Fed officials have begun talking about negative interest rates.
While the Federal Reserve has been talking about raising rates (but not doing it), negative interest rates have been injected into the Federal Open Market Committee meeting discussions and speeches by Fed officials...