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The U.S. already has negative interest rates
You hear all the time people asking, “When is the Federal Reserve going to implement negative interest rates? (NIRP-Negative Interest Rates Policy)”. The truth of the matter is that the U.S. already has negative interest rates. In fact, the U.S. has had negative interest rates for years.
Real vs. Nominal Rates
Nominal rates in the U.S. aren’t negative, but real rates are negative; real interest rates are negative. Real interest rates just mean nominal interest rates adjusted for inflation. When you adjust for inflation, the U.S. had negative interest rates since 2008.
This is not trivial. In fact, I think just focusing on nominal rates is what is trivial. Why does it matter if nominal rates aren’t negative when real rates are negative?! Why does it matter? What in the world is the difference?
Evidence
But in case you don’t believe me that real interest rates are already negative, (and have been negative) take a look below:
