Feb
02
The Fed Wants to Test How Banks Would Handle Negative Rates
By-
Three-month Treasury bill rate falls to negative 0.5 percent
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Very adverse scenario posits harsh worldwide recession
As interest rates turn negative around the world, the Federal Reserve is asking banks to consider the possibility of the same happening in the U.S.
In its annual stress test for 2016, the Fed said it will assess the resilience of big banks to a number of possible situations, including one where the rate on the three-month U.S. Treasury bill stays below zero for a prolonged period…
The Fed Wants to Test How Banks Would Handle Negative Rates
