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Article: Rising interest rates and the impact on accounts receivable.(SELECTED TOPIC)
- Article from:
- Business Credit
- Article date:
- May 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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After aggressive rate cuts in the 2001-2003 timeframe, the Federal Reserve is changing I gears and is working toward moving rates back up to more consistent levels with our economic landscape. In this vein, on March 22, 2005, the Federal Reserve continued a series of quarter point rate advances providing a background of further increases in 2005 with no hint that the end is near.
The Latest move pushes the benchmark federal funds rate at 2.75 percent vs. 1 percent last June, when it reached its lowest threshold in almost 50 years. Whether the purpose is to have rates back to a neutral stance where the funds rate is neither encouraging nor suppressing economy ...