(Fed's historic rate hike has Triangle Businesses Bracing) By: Triangle business journal

The fed's biggest rate hike in nearly three decades has business owners in the Raleigh and Durham area bracing for impact but maintaining long term optimism.

Triangle business owners are eyeing Washington - bracing for impact but maintaining long - term optimism as the Fed hikes interest rates again.

The Federal Reserve on Wednesday raised rates by 0.75 percentage points, the biggest single increase since 1994 as the fight to slow inflation ramps up and the economy teeters. In May, the Feds raised interest rates for the first time since 2018.

Daniel McQuade, CEO of Raleigh -base know seafood, calls the last round of Covid- related stimulus in 2021 "really bad timing."

Now we're paying for it, "he said. "You can't just print money."

He equates the Fed's move Wednesday as "tapping the brakes," and is hopeful it will slow down the rising costs that are putting more pressure on his business and the consumers buying his products.

It's a fine line. You've really got to be on top of this,"he said.

News of rate hike send stock markets on a rapid climb. The Down Jones industrial average was up around 300 points (less than 1 percent)before 3p.m. while the Nasdaq was up around 250 points (2.3 percent).

Mike Walden, economist and professor emeritus at North Carolina State University, said the rate hike will have a two fold impact in the Triangle.

First borrowing costs will be higher, so some businesses may delay planned expansions, he said. Second, as the objective is to slow the pace of the economy, rising interest rates could also mean less robust consumer buying activity.

We've already seen some evidence of this," Walden said. "Even if a recession is avoided, business opportunities will not be as lucrative as years ago, so there won't be as many job postings as there would have been without the rate hike, and some business investments will likely be delayed."

(continue reading in the business triangle journal)