Fed Rate Cut Could Speed Up Some Annuity Sales

September 24, 2024 by Allison Bell

The new Federal Reserve effort to push interest rates lower could help life insurance and annuity sales, according to Jack Elder.

Elder, a senior vice president at CBS Brokerage, said in an email interview that rates are still much higher than they were in early 2022, when they began to shoot up.

The 50-basis-point cut that the Federal Open Market Committee announced Wednesday will be big enough to get consumers’ attention without doing much to hurt the appeal of life insurance policies and annuities, Elder said.

The cut sets the federal funds rate target range at 4.75% to 5%.

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Originally Posted at Think Advisor on September 19, 2024 by Allison Bell.