The U.s. Federal Reserve could be the next key bank to take up previously unthinkable negative involvement rates.

That was the opinion of the ex-president of the Minneapolis Fed, who on April 24 argued that interest rates, already at lows of 0.25%, should fall farther — even if they cannot.

Kocherlakota: Fed "should" fight recession with negative rates

"Unprecedented situations require unprecedented deportment," Narayana Kocherlakota wrote for Bloomberg.

That's why the U.S. Federal Reserve should fight a rapidly deepening recession by taking interest rates below zero for the first time ever.

Negative rates essentially mean that banks must pay to concur their deposits, passing on the costs to clients. The miracle is already at work in Europe, while Kocherlakota foresees U.S. institutions swallowing the hurting instead of hoarding money equally greenbacks.

"...Economists now recognize that doesn't happen, because it'southward plush to shop billions (or trillions) of dollars of newspaper currency safely," he continued.

President Donald Trump has repeatedly voiced his support for lower rates, final year straight criticizing Fed Chair Jerome Powell for failing to make cuts dramatic plenty. At present, he may finally get his wish.

Fed interest rate 60-year chart

Fed interest rate 60-yr nautical chart. Source: Macrotrends

"Does Eastward = mc2 any longer?"

For proponents of Bitcoin equally sound money, notwithstanding, such decisions are causing increasing alarm.

Negative rates and negative article prices, combined with unprecedented government spending, creates a paradoxical situation which many economists throughout the past century have concluded is unsustainable.

As RT hosts Max Keiser and Stacy Herbert explained in the latest edition of their Keiser Report financial news bear witness, negative rates equate to time costing null.

"When we got to negative interest rates, when time had no value, that was one thing," Herbert said.

"...Now we have the negative cost of energy, and so does Eastward = mc2 any longer?"

Earlier, Cointelegraph reported on criticism from ex-presidential candidate Ron Paul, who says that the Fed'south model has already fallen apart.