Federal Reserve Board members talking about negative rates

YANKTON, S.D. (WNAX) – While the Federal Reserve Board is expected to hold interest rates near zero when they meet this week, there are some members talking about negative rates. Supporters say it would encourage more borrowing and help the economy recover.

Rob Stephenson, President and C.E.O. of First Dakota National Bank in Yankton, says it would literally be new territory.

Stephenson says they think most of the impact would be between the major banks.

Stephenson says they would try to manage it away from their daily customers.

Interest rates in Europe have been below zero since 2014, which has hurt those trying to save money. Japan has also had negative interest rates, which hasn’t done much to revive their economy.