FED: Yellen does not exclude use of negative rates

Replying to a question in a letter to Democratic Congressman Brad Sherman, Janet Yellen, president of the US central bank said the hypothesis of negative rates can not be ruled out entirely, but that should be carefully studied. "Although not completely rule out the use of negative interest rates in some future scenario extremely adverse, you should consider a wide range of issues before you use this tool in the United States, including potential unintended consequences," as reported in the letter.

Yellen, optimistic about recovery, explained that if economic conditions deteriorate, "the Fed will adjust its policy appropriately to support progress towards its goal of long-term maximum employment and stable prices."