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Three Tips For Small Business Borrowers In A High Interest Environment
May 1, 2024
Entering 2024, indications were that inflation might be easing, and borrowers became hopeful that interest rate cuts would be on the horizon. Now, four months into the year, inflation remains sticky, and Federal Reserve Chair Jerome Powell has suppressed talk about rate cuts.
“In recent months, inflation has shown a lack of further progress toward our 2% objective,” Powell said following the Federal Open Markets Committee meeting on Wednesday, May 1. “(Interest rate cuts) will take longer than previously expected.”
Powell said recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains remain strong, and the unemployment rate is still low. Yet, the Fed believes that the country’s economic outlook is uncertain, and the FOMC remains highly attentive to inflation risks. As a result, the committee decided to keep the federal funds rate at its current level of 5 1/4 to 5 1/2%.
