◀ The Principal Blog

Views from the CIO: Bank of Japan’s Negative Interest Rate Policy, is the U.S. next?



In another effort to jump-start the stagnant Japanese economy, the Bank of Japan (BoJ) unexpectedly announced on January 29th that it was cutting its benchmark interest rate to -0.1%. The negative rate applies only to excess balances that exceed reserve requirements, thereby encouraging banks to…

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Pounding the Economic Drum: Yellen Addresses Market Volatility Concerns



Federal Reserve (Fed) Chairwoman Janet Yellen is in a tough spot. Markets are pounding the drums with a gloomy message of economic catastrophe on what seems like a daily basis. “Risk off,” the markets say; still the U.S. economy—driven by domestic demand—continues on in the face of higher…

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