I’m Chris Anstey, a senior editor for economic policy in Boston, and today we’re looking at the importance of corporate borrowing costs. Send us feedback and tips to [email protected] or tweet to @economics. And if you aren’t yet signed up to receive this newsletter, you can do so here.
A key part of why Federal Reserve interest-rate hikes are said to affect the economy only with a lag is that, for companies and households that locked their borrowing in when borrowing costs were low, it takes some time before they feel the impact.