But negative interest rates wouldn't be 'very helpful' to the economy, said Zach Pandl, co-head of global foreign exchange, rates and emerging markets strategy at Goldman Sachs.
However, "even in that scenario, I think fiscal policy would be the first step. I don't think that cutting rates to negative territory would potentially be very helpful even in that environment," he said.
Pandl didn't elaborate on why negative interest rates wouldn't be helpful. But many analysts have long doubted the effectiveness of such a policy, citing the experience of some European countries and Japan which have struggled to grow their economies even after adopting negative rates for years.— which measures the greenback against a basket of major currencies — climbed after Powell ruled out going to negative rates.
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