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Bloomberg.com posted a story on Feb. 2 saying the Federal Reserve is considering going to negative interest rates as part of their annual stress test on banks. A negative interest rate means the central bank (and perhaps private banks) will charge negative interest. Instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank. This is intended to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe. The countries of Switzerland, Sweden, Denmark and Japan have already done this.

Click on this link to read the story: The Fed Wants to Test How Banks Would Handle Negative Rates

Related Links Negative Interest Rate Policy (NIRP) Definition - www.investopedia.com Federal Reserve System - Wikipedia 1913 Federal Reserve Act Debt-based economy Fractional Reserve Banking - Wikipedia How money is created - YouTube The Fed and Money Creation - YouTube History of US money