Reply to post: Re: The FED my be reversing that 0.25% rise

Higher US Fed interest rates will hit startups over the head

Tom 13

Re: The FED my be reversing that 0.25% rise

If you raise/borrow money and assume that rates will stay this low forever then you need your head examined. If you do your business plan and cater for them to be say 3% then anything less is a bonus and 'embiggens' the bottom line.

This OUGHT to be true. I'm not sure that it is. The FED has ironically fallen into a money trap. With economies depending on 0% (or lower) interest rates, when they try to bump them they kill economic growth. This is NOT a good place to be. When the next inevitable bust happens (and I wouldn't in any sense claim we've had a boom in the interim) they don't have any tools left in the tool box. And with governments around the world embarrassing drunken sailors with their profligate spending, they don't have any tools either.

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