May 13, 2016
My Emotions and Investing

Negative Interest Rates: What They Mean for You

“Negative Interest Rates: What They Mean for You”, Most Americans can agree the economy has taken an upward turn since the economic disaster that befell the country a few years back causing the housing market to go belly up. However, we all know the roller coaster our economy is and with growth likely to slow at some point in the future, however near or far, what can we expect to see to help cushion the downturn this time? Lately there’s been some chatter about the Federal Reserve digging into the financial toolbox and using what is known as negative interest rates. What exactly is that and what will it mean for your portfolio? Let’s take a look. First of all, you have to understand that the Fed acts a central bank, meaning they are a national bank that holds accounts for commercial banks. In that last few years, globally, several countries have turned to negative interest rates to turn things around. Recently, Tennessee Senator Bob Corker posed the question to Janet Yellen, chair of the Fed, if there were any plans to implement these types of rates in the U.S., meaning would they be charging a rate instead of giving […]