Negative interest rates used to be a thing of central banking fiction.
Now it looks like our Federal Reserve is considering negative interest rates, too.
At a testimony before Congress on Feb. 10, U.S. Federal Reserve Chairwoman Janet Yellen said there was nothing to prevent the United States from adopting negative-interest-rate-policy (NIRP).
NIRP signals a lack of confidence in an economy to investors. When the Fed turns to negative interest rates, it will encourage investors to exit stocks and stockpile their cash.