Trump’s call for negative rates threatens savers
U.S. President Donald Trump’s push for low interest rates reached a new pitch on Wednesday, when he demanded the Federal Reserve take the extraordinary step of sending them below zero. Outside of Washington, D.C., Fed policymakers often face the opposite complaint. Interest rates are too low already, Americans tell Fed officials when they speak at Rotary Clubs and chambers of commerce around the country. …“Low rates are destructive of economic equality,” said Karen Petrou, who runs the policy analysis firm Federal Financial Analytics. “Negative rates would be even more so,” because they would punish moderate income people, particularly those trying to save for retirement, Petrou said.