The Impact of Interest Rates and Tariffs on the Economy

This chapter examines the critical differences between short-term and long-term interest rates and their varying effects on large corporations versus small businesses. It discusses the potential recession risks for American households and small enterprises amidst high borrowing costs and regional banking challenges, while also considering the anticipated government responses under a new administration, including tariff implications. The analysis includes how tariffs could reshape domestic production, consumer behavior, and U.S. export dynamics, with a focus on the interplay between monetary policy and economic confidence.