Negative rates talk a problem for money market funds

By Frank Jackman
18 May 2020

The pain that negative rates in dollars could cause money market funds hangs like an albatross around the US Federal Reserve’s neck. Talk of them has picked up over the last week as US Federal Funds Futures prices started to imply they were on their way, while president Donald Trump pushed the topic on Twitter, even though and Fed chair Jerome Powell appeared to rule them out.

On Tuesday last week, Trump took to Twitter to again promote a negative rate cut as a “gift” to the US economy. A day later, Powell ruled out such a move, stating that “the [Federal Open Market] Committee's view on negative rates really has not changed” and that ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.