Fed's Higher-for-Longer Stance Hits Firms That Expected Rate Cut.

BUSINESS enterprises; ECONOMIC forecasting; BUSINESS conditions; INVESTORS; INDUSTRIAL equipment leases; SMALL business loans; HOUSE buying

The Federal Reserve's decision to keep interest rates high for longer than expected is causing businesses to delay investments in equipment and hiring, leading to a slowdown in the economy. Capital investments in manufacturing are projected to rise by only 3.9% this year, down from an earlier estimate of 6.7%. Business bankruptcy filings have increased by over 40% in the past year, while personal filings have risen by 15%. Small businesses are also struggling with high loan rates and inflation, with financing being their top business problem. Additionally, adjustable-rate mortgages and rising rents are putting further financial strain on households. [Extracted from the article]

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