Credit Suisse: Fed Doesn't Want To Go Negative As Rate Tightening Already Here

Is interest rate tightening already upon the U.S.? The U.S. Federal Reserve’s Open Market Committee statement and subsequent press conference from Fed Chair Janet Yellen presented a balanced view that signs of inflation and growth are sprouting, but also that “an array of risks” to the economy and markets exist. Despite this framework, which a Credit Suisse report called “a little on the dovish side,” substantial defacto tightening is already underway, a March 17 report noted. In fact, with talk of negative interest rates all around, “we believe the Fed remains reluctant to follow other banks into negative policy rate…