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Old 03-21-2024, 05:42 PM
jimbomaybe jimbomaybe is offline
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Quote:
Originally Posted by Stu from NYC View Post
If a companies borrowing costs go up they will do their best to increase prices for their product. That is inflation
Low interest rates stimulate spending, economic activity, higher rates cool down the economy , that why the fed adjusts the interest rate, if any cost go up it will of course put pressure to raise the prices of goods and services business , taking out a loan for day to day expenses doesn't sound like a winning business plan, taking out a loan or floating a bond issue to expand a business, different, high rates discourage that depressing economic activity