Last week, the Federal Reserve hiked a benchmark interest rate by half a percentage point to bring down the worst inflation the U.S. has seen in 40 years. Notably, the Consumer Price Index (CPI) continues to beat historical highs, standing at 8.54% in March 2022 in the U.S. In addition, Jerome Powell, Federal Reserve Chief, said that the Fed would continue to increase the benchmark rate by 25 basis points even if inflation starts decreasing.
However, not all industries suffer from a high-interest rate environment. For instance, the financial industry experiences a profit margin expansion as rates climb due to higher interest income.
