The Business Times
business-time-50
PERSPECTIVE
·
SUBSCRIBERS

Cheap money’s distortions remain, not least in life insurance

As the US Federal Reserve cuts rates, markets are rallying – but there are long-term risks from experiments

google-preferred-sourceAdd BT as a preferred source
    • With private equity groups moving into the insurance sector, there are worries that when interest rates rise in the future, or a slowdown occurs in the private capital world, unexpected losses could emerge that would create a domino effect.
    • With private equity groups moving into the insurance sector, there are worries that when interest rates rise in the future, or a slowdown occurs in the private capital world, unexpected losses could emerge that would create a domino effect. ILLUSTRATION: PIXABAY

    Gillian Tett

    Published Fri, Sep 20, 2024 · 05:05 PM

    ARE we back to “normal”? That is a question many investors might now ask, after the US Federal Reserve cut interest rates by a whopping 50 basis points this week.

    After all, ever since the 2008 crisis, finance has been in a deeply abnormal state. First, central banks slashed rates to stave off depression, then they doubled down when the pandemic hit – before finally raising in panic when inflation exploded.

    Now the Fed is cutting rates in response to slower growth. This looks more like the pre-2008 financial cycles. No wonder markets are rallying in relief.

    PerspectiveUS Federal ReserveInsurance

    TRENDING NOW

    KSL's Khoo Lee Feng says it is "not so much what you study, but how you learn".

    Johor property old hand KSL readies family handover amid market boom

    Indonesia's Finance Minister Purbaya Yudhi Sadewa says figures in the reported export data are roughly 50% lower than the actual numbers.

    Wilmar, Musim Mas among palm-oil firms in Indonesia under probe for suspected export under-invoicing

    CEO Kerry Mok says Sats has “a lot of growth opportunities”, including investments in AI and new geographies, as well as refreshing its assets.

    Sats may reward shareholders with special dividend if there’s spare cash

    LKT commenced proceedings in the Singapore High Court against Edmund Cheah in May 2025, alleging breaches of fiduciary duties and duties of fidelity.

    Property group Lee Kim Tah reaches settlement with ex-director in ongoing misconduct probe

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More