๐Ÿšจ US CFOs RAISE INFLATION EXPECTATIONS โ€” RATES NOW A TOP CONCERN ๐Ÿ‡บ๐Ÿ‡ธ๐Ÿ“ˆ

A new Fed survey of ~500 companies shows businesses are preparing for higher price pressures while growing more concerned about monetary policy.

๐Ÿ”น 2026 price growth expected: 5.3% vs 4.6% previously
๐Ÿ”น 2027 expectation: 4.5% vs 4.1% previously
๐Ÿ”น ~20% of firms now cite monetary policy as their top concern
๐Ÿ”น Small firms face growing financing constraints
๐Ÿ”น 42% of firms not investing cite unfavorable financing or cash preservation โ€” up from 32%
๐Ÿ”น Capital investment expectations have weakened

โš ๏ธ The survey was conducted Aug. 17โ€“Sep. 4, before the Fed's latest rate hike.

๐Ÿ“Š Market takeaway: Rising inflation expectations + higher borrowing costs could keep pressure on businesses and complicate the Fed's fight against inflation.

๐Ÿ‘€ Could โ€œhigher for longerโ€ rates become the next major market risk?

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