Federal Reserve Rate cut space: Rates have already been cut to 0-0.25% Negative rates: Not seen as an appropriate response - Powell said this on 15 March. That's for three reasons. Firstly, the legal documents state banks using the deposit facility “may receive earnings”. There is no mention of paying money to the Fed so this would need legal clarification and possibly a law change. Secondly, the experience of negative rates in Europe and Japan doesn’t suggest it is particularly successful. It may, in fact, be more damaging for the financial sector and a drag on activity. Finally, US money market funds' legislation ... (full story)