Pansen Macro: High interest rates continue to squeeze small businesses in the US economy

Gate.io data on 8th October, Oliver Allen, a macroeconomist at Pantheon, believes that the tight credit environment continues to hinder the development of small businesses in the United States. The National Federation of Independent Businesses (NFIB) confidence index in September only saw a slight increase, with respondents citing increased uncertainty in the business environment. Allen said that due to the still high interest rates this month, despite the first decline in borrowing costs by the Federal Reserve in many years, credit tightening is clearly squeezing investment in ordinary businesses. He pointed out that the impact of interest rates on business behavior has a long lag, so after the Fed relaxes its policy, small business spending may further weaken before eventually rebounding.