The Fed’s aggressive interest rate hikes to control the high inflation have put pressure on equities and other risky asset classes. However, the central bank’s hawkish stance is finally yielding results, with inflation cooling down for the second consecutive month in November.
While the Fed announced a 50-basis-point increase last week, lower than the previous four hikes, it indicated that it would continue raising rates through 2023. Although rising rates put pressure on most industries, they benefit financial companies, including insurers.
