How Businesses Can Prepare for Economic Uncertainty

Businesses should always be prepared for economic uncertainty.

A combination of factors lingering from the historic pandemic, including supply chain issues and above-average consumer saving, resulted in record-high inflation in 2023. To bring down inflation, the Federal Reserve plans to “tighten” the economy. What does that involve?

According to finance experts, interest rates will go up for everyone who plans to borrow money. For consumers, the cost of critical purchases, such as mortgages, credit cards and bonds, will significantly increase.

The Federal Reserve uses this economic tightening method to lower inflation and cool down the economy. Experts say it will also become more difficult for business owners to get loans.

Other unfortunate side effects of economic tightening include lowered job-availability and business closures. Consumers will begin spending less and investing only in products and services they deem necessary.

To stay ahead of The Fed with marketing, download Monet’s newest strategy guide: How Businesses Can Prepare for Economic Uncertainty.