The combination of aggressive fiscal policy and negative rates may be necessary for the US to see a “v-shaped” recovery, a Federal Reserve Bank of St Louis economist says.

“The economic damage from a severe recession can last indefinitely without powerful, overshooting responses from policy-engineered stimulus,” Yi Wen says in a May 29 research note.

Authorities should consider negative rates alongside government spending on infrastructure, he says.

Fed chair Jerome Powell restated the

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