Will the Federal Reserve adopt a Negative Interest Rate Policy by the end of 2021?
Market Rules
A negative interest rate policy (NIRP) is an unusual monetary policy tool in which nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.
The goal of such policy is to prevent banks and other financial firms from withholding cash during an economic crisis, by forcing those institutions to pay to keep their excess reserves stored at the central bank rather than receive positive interest income. Ultimately, that would serve as a stimulus to economic activity in the region where the NIPR is under effect, as financial institutions could decide to increase their credit supply to the public as a means to avoid the losses of holding reserves back.
If on or before December 31, 2021, the Federal Reserve announces it will adopt a Negative Interest Rate Policy in the United States of America, this market will be resolved as "Yes".