Fed's Kaplan: Negative rates unlikely to have benefits that would outweigh harm

Dallas Fed President Robert Kaplan told CNN International on Tuesday that he was sceptical that negative interest rates would have benefits that would outweigh the harm. "Negative interest rates would impact intermediaries, money market funds," Kaplan added.

Additional takeaways

"Fed's actions need to be complemented by fiscal stimulus, grant-making by Congress."

"More fiscal stimulus will be necessary."

"With an 8%-10% unemployment rate at the end of the year, the overall effect on consumer spending power will be negative."

"It may take until the end of 2021 to work off excess oil inventory."

Market reaction

The US Dollar Index recovered slightly from daily lows and was last seen down 0.43% on the day at 99.80.