Fed Worries About Life Insurers’ Leverage
June 24, 2020 by Allison Bell
The Federal Reserve Board is worried enough about the health of life insurers to include them in the financial stability section of its new monetary policy report.
Federal Reserve Board Jerome Powell is briefing congressional committees on the report this week.
The Fed started off the report by emphasizing the impact of the COVID-19 outbreak.
“The COVID-19 outbreak is causing tremendous human and economic hardship across the United States and around the world,” the Fed says in the report summary.
Because of the strain, the Fed has taken unprecedented measures to keep the market moving, including setting up mechanism for pumping cash into the economy, the Fed says.