Commercial Interest Rates

“History doesn’t repeat itself, but it often rhymes”.

This famous quote by Mark Twain can be applied to the Federal Reserve’s policy on interest rates over the last thirty years. The Federal Open Market Committee’s (FOMC) policy of increasing rates 10 times in the past year from .25% to 5.25% has significantly impacted borrowing costs for individuals and businesses, contributing to an overall uncertainty for business leaders.

During these periods of uncertainty, it is especially important to strengthen the relationship with your community banker who can provide meaningful advice to inform decisions affected by interest rate volatility. For example, the inversion of the yield curve creates a dynamic where short-term rates are higher than long-term rates presenting an opportunity for selecting the optimal loan term. The following link provides additional ideas and considerations to discuss with your community bank adviser who is eager to help with those important decisions affecting your business.

Loan Structuring and the Inverted Yield Curve

Contact us about your situation.