Fed Opens The Door To Negative Rates

With markets in turmoil and the scent of deflation growing stronger by the day the Fed cried uncle this morning with the following comment by New York Federal Reserve President William Dudley:

“If the economy weakened, we would consider negative rates.”

Gold is back above $1090 in USD terms this morning as equities try to battle back from a 350+ point down open in the Dow. It’s set up to be a captivating finish to a tumultuous week.

Bloomberg: Dudley Says Economic Forecasts Little Changed Since Fed Meeting