Boon for Bitcoin, Donald Trump as Ex-Fed Official Pushes to Tax Savers

The United States Federal Reserve could be the next central bank to take up previously unthinkable negative interest rates.

That was the opinion of the ex-president of the Minneapolis Fed, who on April 24 argued that interest rates, already at lows of 0.25%, should fall further — even if they cannot.

Kocherlakota: Fed “should” fight recession with negative rates

“Unprecedented situations require unprecedented actions,” Narayana Kocherlakota wrote for Bloomberg. 

That’s why the U.S. Federal Reserve should fight a rapidly deepening recession by taking interest rates below zero for the first time ever.

Negative rates essentially mean that banks must pay to hold their deposits, passing on the costs to clients. The phenomenon is already at work in Europe, while Kocherlakota foresees U.S. institutions swallowing the pain instead of hoarding money as cash.

“…Economists now recognize that doesn’t happen, because it’s costly to store billions (or trillions) of dollars of…