Pansen Macro: Small Businesses in the United States Struggle with High Credit Costs

The September 10th data from Jinshi News, Pan Sen Macro’s chief economist Ian Shepherdson pointed out that the high interest rate in the United States is putting pressure on small businesses. According to a survey by the National Federation of Independent Business (NFIB), the mood of small business owners plummeted unexpectedly last month. Shepherdson pointed out that this is often easily influenced by political noise, as small businesses tend to lean towards the Republican Party. He pointed out that the Democratic Party’s campaign momentum has increased after President Biden withdrew from the campaign and instead supported Vice President Harris. However, Shepherdson said that aside from political factors, the more pessimistic data reflects a very tight credit situation, and the Federal Reserve has not dropped its fund interest rate. He said: ‘High borrowing costs continue to put pressure on recruitment and capital spending plans.’