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A lot of what the author said is negated by the fact banks build into their loans that the rate can not drop below zero and that is before their spread (profit) is added to the rate. What is correct is the rate cannot continually go down further but it will actually make banks even more profitable because they essentially have built in floors to the loan at zero. Meanwhile the bank may borrow below zero. As for the effect on the overall economy, it does mean that actions taking interest rates negative will be mostly ineffective should they be used. However the fed has been slowly crawling back to a better balance sheet with QT and higher rates over the last few years and even though there have been 3 cuts in a row last year the fed is still better prepared than say 3 years ago.

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