FRANKFURT May 21 There is not sufficient
support to take interest rates into negative territory in the
United States, a top Fed official said on Tuesday.
St. Louis Fed President James Bullard said such a policy of
negative rates would run out of road after one or two cuts.
"You could go negative and I have advocated that, but I just
don't think there is enough support at this point to go in this
direction. I have described it in the past as a dead-end
policy," Bullard said after giving a lecture at Frankfurt's
The Fed has an official 2-percent inflation target and has
said it will keep benchmark interest rates near zero until
unemployment falls to at least 6.5 percent, as long as inflation
expectations do not breach 2.5 percent.