Short term federal interest rates are near zero. The U.S. Federal Reserve has attempted to jumpstart our struggling economy by freezing short-term interest rates for two years and opening the door to more quantitative easing.
Lowering interest rates can give the economy a short-run boost and can be a great boon to small businesses looking for a loan. Under normal conditions, most economists think a cut in interest rates will only give a short term gain in economic activity that will soon be offset by inflation. Perhaps to combat potential inflation, there is talk the the U.S. Treasury could join the Federal Reserve in driving a stimulus to drive down long-term interest rates.
According to the U.S. Federal Home Loan Mortgage Corp., long-term mortgage rates dropped to record lows for the past decade. Freddie Mac said the average interest rates for 15-year loans and 30-year fixed-rate loans are at the highest affordability level in a generation.
By lowering short and long term interest rates, the goal is for businesses to increase investment spending and to increase banks’ willingness to lend to businesses and households.
The upside for attorneys, CPAs, and other licensed professionals? You should see an influx of business; individuals hoping to take advantage of these low interest rates, put their business idea into action, and form their own business. Whether you need to incorporate or form your client’s LLC, Attorneys Corporation Service can help. With same-day service, nationwide Corporate, LLC, and related filing services, and customized corporate kits, we can take care of all your business formation needs.
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