WSJ: Fed Rate Cut Hurts Lenders & Insurers the Hardest

The Federal Reserve lowered the target range for the federal funds rate by 1/2 percentage point, to 1 to 1 1/4 percent citing the evolving risk posed by the coronavirus on economic activity.

According to The Wall Street Journal, the Fed has not moved rates in-between meetings since the financial crisis of 2008.

The Journal reported that this move will hit U.S. lenders and insurance companies the hardest after a week in which their shares were already in decline.

In a statement, the Federal Reserve Committee indicated that it is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.