May 11, 2020 / 5:15 PM / 16 days ago

Fed's Bostic: 'Not a big fan' of negative interest rates

FILE PHOTO: Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion at the American Economic Association/Allied Social Science Association (ASSA) 2019 meeting in Atlanta, Georgia, U.S., January 4, 2019. REUTERS/Christopher Aluka Berry

WASHINGTON (Reuters) - Atlanta Federal Reserve bank president Raphael Bostic said he is “not a big fan” of negative interest rates.

Negative rates are “among the weaker tools in the toolkit,” Bostic said in webcast remarks, reiterating the broad view among Fed officials that the U.S. is unlikely to use a policy approach currently used in Europe and Japan.

Some traders see negative rates as a possibility as the Fed battles the economic fallout from the coronavirus pandemic, though Fed officials have generally opposed the idea.

Reporting by Howard Schneider; Editing by Chris Reese

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