VIEW: Tuesday saw Goldman Sachs note that.......>

FED: VIEW: Tuesday saw Goldman Sachs note that "the basic argument for cutting

interest rates below zero is the same as the argument for cutting rates above

zero, namely to stimulate the demand for credit. Fed officials cite concern that

negative rates hurt banks and disrupt lending, but most research finds that rate

cuts below zero do ease financial conditions. For the Fed to reconsider, the

recession would have to reach the point where weak demand rather than the virus

is the main economic problem, the fiscal response would have to fizzle while the

unemployment rate is still very high, and a further step-up in asset purchases

would have to lose appeal for one reason or another. Taken together, these

stringent conditions imply that the hurdle for a negative funds rate anytime

soon remains high."