Futures markets imply the Federal Reserve will end up taking interest rates negative. Investors should be careful not to view that as an inevitability. But neither should they think it impossible. Last week, futures markets began pricing in the Fed taking overnight rates into negative territory by the end of this year. With Fed officials pushing back against the idea, those bets have moderated but haven’t gone away, with futures now pointing to rates going negative by June of next year.

Source: Wall Street Journal May 11, 2020 18:12 UTC