Let's go over negative interest rates.
Yesterday, we heard from Federal Reserve chair Jerome Powell.
Powell said that the U.S. economy may need "additional fiscal support" to help "avoid long-term economic damage and leave us with a stronger recovery.”
When asked about negative interest rates, Powell said that the Federal Reserve wasn't considering negative interest rates "for now."
Goldman Sachs co-head of global foreign exchange, rates and emerging markets strategy, Zach Pandl, said to CNBC that the second wave of coronavirus cases could make the Federal Reserve rethink negative interest rates.
"If the economy has another big setback ... where you have a second wave of infections and it would really take the recovery off course, then I do think that that opens up a possibility of a range of additional actions,” Pandl told CNBC.
"Interest rates in the U.S. have been the main factor keeping the dollar well supported over the last few years and that source of support is now gone, U.S. rates are now much closer to the low levels that we’ve seen in the rest of the world,” he continued.
In the video above, Jim Cramer said he isn't concerned about negative rates and wants the Fed to keep doing what it's doing.
Watch More of the Latest Videos on TheStreet and Jim Cramer
- Jim Cramer: No Way That J.C. Penney Survives
- Jim Cramer: I'm Looking Out for the People Who Were Me Before I Made Money
- Jim Cramer: TikTok Is the Hottest Company on Earth
- Jim Cramer: Banks Could End Up With Really Bad Loan Book
- Which Countries Have the Most Doctors?
- C-Suite: Crunch Fitness CEO's Tips for Staying Fit Indoors