Interest Rates Are Killing Our Industry': Businesses React As Jerome Powell Warns Of Further Rate Hike

The Dallas Fed’s Texas Manufacturing survey indicates that the Federal Reserve’s steady interest rate hikes are adversely influencing the economy, Business Insider reported.

The August survey shows a drop in the production index, a measure of factory activity in Texas. It fell six points to -11.2, marking its lowest level since May 2020. The new orders index has been in negative terrain for over a year.

The survey report stated, “Perceptions of broader business conditions continued to worsen in August. The general business activity index stayed negative but ticked up.”

See Also: University Of Michigan Consumer Sentiment Declines In August, Consumer Expectations Also Fall

Participant comments indicated that high-interest rates are hampering industrial production. One respondent in the computer and electronic product manufacturing industry expressed, “This is the time to stop raising interest rates.”

“Interest rates are killing our industry,” another respondent described.

Other responses pointed out a decrease in customer orders and discretionary spending capability, along with a slowing economy in the machinery manufacturing sector.

Despite these concerns, whether Fed Chairman Jerome Powell will reconsider the interest rate policy is uncertain. In his recent statement at Jackson Hole, Powell emphasized that curbing inflation remains the Fed’s primary challenge, suggesting that further interest rate hikes might be needed.

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Photo courtesy of the Federal Reserve