A negative interest means the instead of the bank paying you money to keep in the savings account, you pay the bank to do so. It also means that anyone can borrow money from the bank and pay back less than what they borrowed.
The researchers wrote that "even if President Trump does not directly influence Fed decisions, his political pressure can still affect policy indirectly by changing market expectations regarding the Fed."
Federal Reserve Chair Jerome H Powell said the US economy remains strong and unemployment is low, but that “there are risks to this positive outlook.” If the economy weakens, a “more extensive” series of rate cuts would be appropriate, he said.
The Federal Reserve cut interest rates on Wednesday, but against expectations the head of the US central bank said the move might not be the start of a lengthy series of cuts to shore up the economy against risks including global economic weakness.
Markets reacted swiftly to remarks by two of the most senior Fed officials next to Chairman Jerome Powell. They are among the 10 people who will vote on rates at the Fed's next policy meeting on July 30-31.