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Recently, Federal Reserve Chairman Powell made a strong statement at the Global Central Bank Annual Meeting. He clearly statedThe time for policy adjustment has come，The policy direction has been made clear, and the timing and pace of interest rate cuts will depend on subsequent data, changes in the outlook and the balance of risks.

The Wall Street Journal said Powell sent the strongest signal of a rate cut so far.

And just on the 23rd, according to CME's "Fed Watch", the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 67.5%, and the probability of cutting interest rates by 50 basis points is 32.5%.

Shortly after Powell finished his speech, the S&P 500 rose by more than 1% when the U.S. stock market opened, and the Dow Jones Industrial Average rose by 400 points at one point. The Nasdaq, which is dominated by technology stocks, and the Russell small-cap stocks, which are more sensitive to economic cycles, led the way, rising by 1.5% and 2%, respectively.

At the same time, U.S. Treasury yields and the U.S. dollar index plunged in the short term, both of which were related to the logic of trading that "the Federal Reserve is about to cut interest rates."

What impact will the interest rate cut have on Hong Kong insurance?

Image source: pixabay

The Federal Reserve’s interest rate cut may affect the investment performance of insurance companies.