Repositioning capital as short-term rates fall
When the US Federal Reserve changes interest-rate policy, Cayman feels it almost immediately. Cayman’s financial system is US-dollar based, its mortgage and corporate lending rates are priced off US benchmarks and most investment portfolios held locally are ultimately anchored to US capital markets.
Since late 2024, the Federal Reserve has reduced the federal funds rate by approximately 175 basis points, reflecting a clear shift away from restrictive monetary policy toward a more accommodative stance to support economic growth, rather than in response to a collapse in activity or employment conditions. US inflation has moderated meaningfully, while productivity, corporate earnings and capital investment particularly in technology, energy and infrastructure remain resilient. For a more complete summary of the story, please see the below link:
Published on: Jan 24, 2026 12:06 PM