With interest rates unchanged, small businesses continue to struggle: 'I can't grow my business'

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Experts from Goldman Sachs think small businesses will have to spend about 7% of what they earn on interest payments next year, which is more than before.

Americans across the country are grappling with the repercussions of sustained high interest rates, which have been hovering just over 5% since July – the highest in decades. The Federal Reserve's decision Wednesday to keep rates steady signals continued challenges for those looking to borrow.Small businesses, often described as the backbone of the economy, are among the hardest hit.

'Federal Reserve Chair Jerome Powell said the battle against inflation is far from over, and on Wednesday, the Federal Reserve announced it would keep interest rates unchanged, leaving them at the highest level in 22 years. 'The full effects of our tightening have yet to be felt today,' Powell said. 'Given how far we have come along with the uncertainties and risks we face, the Committee is proceeding carefully.

 

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