The likelihood of a Federal Reserve interest rate hike next week has increased to 70% due to rising wholesale prices and a surge in oil prices, with a second hike also being considered before the end of the year.
Key takeaway
70% likelihood of a Federal Reserve interest rate hike due to rising wholesale prices and oil prices.
- Step 1 · The triggerthe Fed signals a 70% likelihood of an interest rate hike due to rising wholesale and oil prices
- Step 2 · Knock-onhigher interest rates increase borrowing costs for SMEs reliant on loans
- Step 3 · Knock-onincreased operational costs lead to reduced consumer spending and investment by SMEs
- Step 4 · Reaches youSMEs may see a decline in sales and profit margins as financing becomes more expensive
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: CNBC
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