Business Owners, it's time to get credit for your business... NOW!
Recently, the Federal Reserve raised its benchmark interest rates 0.75 percentage points and plans to continue to do so. According to CNBC, this is the “most aggressive hike since 1994.” To add, inflation is rising at its highest in nearly 40 years.
“We want to see progress. Inflation can’t go down until it flattens out,” Powell said. “If we don’t see progress ... that could cause us to react. Soon enough, we will be seeing some progress” (CNBC, 2022).
Despite a current strong job market and growth, May 2022 was the lowest job-gain since April 2021. The unemployment rate currently sits at 3.6% and is projected to hit 4.1% by 2024.
Business owners across the nation have become incredibly strong and resilient having to navigate the ever changing landscape that accompanied the Covid-19 pandemic. As the Federal Reserve continues to increase interest rates, local and federal banks are also increasing their rates.
“Wells Fargo CEO, Charlie Scharf, said that there was ‘no question,’ that the U.S. economy is heading toward a downturn” (WA Post, 2022). Additionally, he predicted it may not be as severe with the current strength of consumer demand and business activity. However, banks have already begun to retract on commercial credit facilities.