As Inflation Rises, Experts Say Companies Should Increase Business Investments
Since the election of President-elect Donald Trump inflation expectations have been steadily rising, and should those expectations near reality experts are encouraging companies to raise their business investments, possibly spending more than they have since the financial crisis.
On Election Day the 10-year inflation rate jumped to 2% from 1.7%, and consumers surveyed by the Federal Reserve Bank of New York said they expect inflation to average 2.8% over the next three years, up from a forecast 2.6% in October, the Wall Street Journal reports. Companies should watch the situation closely, and if inflation starts to rise as predicted, consider making serious investments in their businesses.
Investing when there's an uptick in inflation can help companies pay off debt and save money in the long run, but it’s also a risky move — if inflation doesn’t rise as expected, companies may be left with heavy debt that’s harder to pay. [WSJ]
