May 12, 2020 / 1:53 PM / 24 days ago

Fed's Kaplan says he opposes using negative interest rates

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco, U.S., October 11, 2019. REUTERS/Ann Saphir

(Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Tuesday became the latest U.S. central banker to unequivocally reject negative interest rates as a monetary policy tool.

“I would be against negative interest rates,” Kaplan said in an interview on CNN International, citing the effect it would have on the financial system, “on intermediaries, on money markets; I’m a skeptic whether negative interest rates would actually be helpful, or whether the help would be outweighed by the harm it would do to the financial sector. So I personally am not a fan or a proponent of negative interest rates.”

Reporting by Ann Saphir

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