Recalibrating your business to absorb and plan for interest rate changes is a complex task, especially amidst so much uncertainty. Following are generalized business considerations for a falling rate environment.
The Federal Reserve decreases short term interest rates in an effort to stimulate the economy in the face of recessionary conditions. Most memorably, short term rates were decreased to near zero beginning in 2008 as the Fed acted to stem the drastic slowdown caused by the housing crisis. Falling rates likely signify tough times ahead. A banker who is a partner in the success of your business can look at your complete picture and help you to identify and proactively mitigate the risks you can control to insulate yourself against the external conditions you cannot. Variable or floating rate vehicles may be an option to take advantage of declining rates.
