Overseas central banks have implemented low interest rate and even negative interest rate policies, which have helped push down yields across the world – there is almost $8 trillion in global bonds with negative yields. Conversely, many market observers believe the Fed will not indulge negative rates here in the U.S. and that while lower for longer may still be the order of the day, the Fed can still gradually raise rates, which remain near historic lows.
Related: Japan’s 2016 Monetary Policy: Mistakes and Missed Opportunities
Last Friday, “Yellen expressed confidence that tighter labor markets over time will push inflation back to the central bank’s 2 percent goal. The likelihood of a boost to rates at the Fed’s next meeting on Sept. 21 reached 40 percent, up from 32 percent the day before, futures prices show,” according to Bloomberg.
For more information on Currency ETFs, visit our Currency-Hedged category.
PowerShares DB U.S. Dollar Index Bullish Fund
