Folks using “inflation” as the trigger for their office drinking games are annihilated after Chairman Jerome Powell’s press conference today. Powell took questions for 90 minutes after announcing the Federal Reserve voted to increase rates by 75 basis points for a third straight time, but it was inflation that dominated the presser.
“We need to get inflation back to 2-percent,” Chairman Powell said several times.
But it wasn’t all bad today, in fact there was plenty of optimism in the room — journalists and Powell regularly mentioned a, “resilient labor market with strong corporate profits.”
But what does all this mean for business owners interested in a commercial loan?
“I’m seeing a small spike in interest rates,” says Champion Equipment Finance Founder Marcos Silva. “Fed interest hikes are impacting my clients to the tune of 1 or 1.5 points, but there are still good rates out there,” Silva added.
The Fed meets again on November 1st and 2nd — for those looking to improve their business, it might be best to get ahead of the next meeting.
Chairman Powell suggested that failing to get inflation back to 2-percent would be “a big failure.” But is quick to mention that some of the reasons for inflation issues are problems we’ve never experienced with recent supply shocks and the Ukraine invasion.
Don’t panic — there is still a lot of opportunity in this economy and if you’re looking to buy — if possible –consider sooner rather than later.