What the Fed’s Rate Cut Means for Life and Annuity Bulls and Bears

September 24, 2024 by Lloyd Lofton

In a bold move reminiscent of the financial crisis of 2008, the Federal Reserve has slashed interest rates by 50 basis points. (Translation: half a percentage point.)

That’s the largest single cut in more than a decade.

This aggressive action initiates the central bank’s first easing campaign since the onset of the COVID-19 pandemic in 2020, bringing benchmark borrowing costs down to a range of 4.75 to 5%.

With inflation stabilizing near the Fed’s 2% target, 11 out of 12 policymakers endorsed the cut, reflecting newfound confidence in balancing the dual goals of employment and inflation.

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Originally Posted at Think Advisor on September 23, 2024 by Lloyd Lofton.