Negative interest rate policy and Intensifying recession fears, volatile financial markets and moves toward negative rates

Negative Rates in US? Here’s Why It Could Happen

Less than two months after the Fed enacted its first rate hike in more than nine years, market talk already has turned to whether the central bank’s future may not be more hikes, but rather negative rates. Intensifying recession fears, volatile financial markets and moves toward negative rates by other central banks have triggered speculation…

Gold dollar sign sinking in ocean of water

Debt Limit Resolution: As the Dust Settles

So, nothing seems to have changed as a result of the budget and debt crisis. We simply kicked the can into next year. While the GOP took a good deal of self-inflicted damage in the standoff, this was not a victory for Democrats in terms of achieving any of their budget objectives. The deep budget cuts under sequestration remain in place and will deepen with more cuts in January. All is as it was before. But at a deeper level, there are, in fact, two significant consequences of this fiasco, having to do with the impact on the GOP and on markets in general.