There is increasing speculation regarding whether the Federal Reserve might set a negative target for the federal funds rate should the economy enter a recession. If it did, the Fed would not be the first central bank to do so. Although negative policy rates have been rare until recently, the European
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The Federal Reserve kept interest rates low (and took extraordinary expansionary actions) in response to the financial and economic crisis that began in the autumn of 2008. Beginning in December 2015, as the recovery gained traction, the Fed began gradually raising the federal funds rate, the interest
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Modern Monetary Theory (MMT) has attracted attention, especially among many who see in it a support for greater government spending. Representative Alexandria Ocasio-Cortez (D-NY) says MMT should be “a larger part of the conversation” and Senator Bernie Sanders (I-VT) has drawn on the advice of Professor
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