Why aren’t businesses investing more in the future?
Businesses invest when they think there’s a bright future ahead. That’s why we care about the fact that business investment is slowing down — by 0.8% last quarter, the weakest showing since 2015. There’s a lot that’s been worrying businesses so far this year, from the government shutdown (remember that?) and market turmoil, to escalation after escalation in trade conflicts and slowing growth abroad. It’ll likely take more than a 0.25% interest rate cut by the Federal Reserve to fix all of that.
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