Fed Vice Chairman Stanley Fischer stated at Howard University (one of America’s traditionally black colleges), that the Federal Reserve is not looking to raise interest rates “too much”. Raising interest rates, which has been at near zero since the 2008 recession, will add additional cost to bank lending, but generally occurs when an economy is strong.
In addition to interest rates, Fischer implored more students to take up economics. The Fed has come under heavy scrutiny for its lack of diversity with “only one of its 17 policymakers" Neil Kashkari, being from a minority group. "None of the policymakers are black or Hispanic.”
It will always be a struggle to recruit diverse talent when you don’t have much to begin with. Going to the source at colleges like Howard is a good start though. In terms of rates, the upcoming increase will have a huge impact on small business lending which is already stagnant. Hopefully the upcoming rise does not negatively impact smaller firms and their ability to borrow capital.
It looks like if you’re considering a loan application, now is the best time to apply.