CFOs Worry About Interest Rate Hikes Amid Persistent Inflation

Financial officers at US companies are increasingly worried about rising interest rates, according to a new survey from the Federal Reserve. The quarterly poll of around 500 firms found that CFOs expect higher inflation this year and next, with price increases averaging 5.3% this year and 4.5% in 2025.

The jump in pricing expectations comes even as monetary policy concerns have risen to the top of CFOs' lists, with around 20% citing it as their main worry. This is a shift from previous surveys, where inflation was a more pressing concern. The survey was conducted between August 17 and September 4, before the Federal Reserve's recent rate hike.

Despite rising concerns about interest rates and financing constraints, overall optimism among financial officers remains strong. However, small businesses are feeling the pinch, with around a fifth citing financing difficulties as a major issue. This has led to reduced capital investment plans in the next six months compared to previous expectations.