US Federal Reserve cuts interest rates after long wait

Industry reaction is swift but what will the changes mean to returns on insurers’ investment portfolios?

Jerome Powell at the FOMC press conference on September 18, 2024.

The US Federal Reserve made its long-awaited cut on Wednesday after four years of increases. At a meeting of its Federal Open Market Committee (FOMC), the group voted 11 to one for the change.

The changes to the market could affect insurers’ investment portfolios, which have been seeing healthy returns in the ‘higher for longer’ environment.

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