Powell speech: Evidence on whether negative rates work is mixed

The Federal Reserve's Main Street Facility is very challenging because of the wide diversity of companies, Jerome Powell, Chairman of the Federal Reserve System, said on Friday.

Additional takeaways

"We are trying to figure out the right credit products for that market is quite challenging."

"Fed is days away from making first loans in Main Street facility."

"Main Street facility far and away the biggest challenge of any of the programs Fed has set up."

"Could imagine expanding on either end of the program for the size of employers."

"Program looking for companies in good, solid financial shape before the pandemic."

"Evidence on whether negative rates work is mixed."

"Negative rates hurt bank margins, can make them lend less."

Market reaction

These comments were largely ignored by the market participants. As of writing, the US Dollar Index was down 0.26% on the day at 98.20.