Recently some traditional economists were confused when they saw that more countries joined “the negative interest rates club”, so here is my opinion on this bizarre macroeconomic trend. We’ll try to explain why such a policy has occurred and why it can be a dangerous sign for the global economy.
On Wednesday, July 31, 2019, the Federal Reserve lowered interest rates by 25 basic points to a range from 2.00% to 2.25%. It was the first interest rate cut since 2008. Why did this happen and what are the possible consequences of such a change?