I must confess, when the Federal Reserve continued its war on inflation by moving its benchmark interest rate to the highest in 15 years, I was concerned. December’s half-point spike broke a run of four straight three-quarter point hikes, which hasn’t happened since since the early 80’s.
And yes, this caught my attention.
- Interest rates would climb to an unreasonable number and kill sales
- Borrowers would be scared by the news and not even apply for commercial lending
- Spiked interest rates would halt sales
- War on Ukraine and global economic uncertainty would stall markets
However, based on the amount of incoming phone calls, lead flow, commercial loans in progress and client feedback–my concerns are not happening. In fact, this January is tracking to be the best we’ve seen in years.
It’s true that interest rates have increased and our prime clients who typically get 5-percent, are now getting 6.5-percent. But based on what we’re experiencing, trucking and transportation is off to a healthy start in 2023. Economic fear comes from all angles, all the time, but it seems the industry isn’t listening–it appears the trucking industry is ready to work.