Memories of the pandemic influencing business decisions, uncertainty with interest rates

Businesses have not yet faced a recession in the US due to the fresh memories of the pandemic, prompting caution in laying off employees and scaling back plans. Interest rates play a crucial role in business decisions, with the balance between investment and concerns over future capacity being influenced by potential higher rates. Despite expectations, higher rates have not significantly impacted consumer consumption, although interest-sensitive sectors like housing and commercial real estate have felt the effects. Business investments have leveled off, and there is anticipation of upcoming impacts as interest rates continue to shift.