Higher interest rates, lack of profitable investments, less economic activity and foreign currency exchange fluctuations are all challenges that put strain on a company's balance sheet and could lead to lawsuits against the company and its directors and officers. (Credit: rawpixel.com/Adobe Stock) Higher interest rates, lack of profitable investments, less economic activity and foreign currency exchange fluctuations are all challenges that put strain on a company's balance sheet and could lead to lawsuits against the company and its directors and officers. (Credit: rawpixel.com/Adobe Stock)

Over the past decade, the Federal Funds Rate has consistently stayed below 2.5% and near zero from January 2009 until January 2016. The COVID- induced crash of February 2020 once again brought the federal funds rate near zero until early this year (prime interest rates are generally 3% higher than the Federal Funds Rate).

These last few years of easy monetary policy led to a low interest rate environment and an unprecedented amount of borrowing. This borrowing, however, has led to investment, research and development and innovation. Without the ability for businesses to borrow at low rates we would likely not have the same amount of capital deployed towards new ideas and the betterment of our society. We can now hail a taxi with our phone, wirelessly listen to any content at the touch of a button and stay anywhere in the world without going through a hotel. Investment leads to growth and we have a clear gauge of GDP growth over the last decade, nearly 53%.

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