NEWS, 4 JAX AT 5. FROM THE LOCAL STATION NEWSFOURJAX. ♪
>> THE MOVE NOT SEEN FOR
ALMOST 3 DECADES. THE FEDERAL
RESERVE TODAY RAISED INTEREST
RATES, 3 QUARTERS OF A
PERCENT. THEY’RE SCHEDULE.
RAISE THE RATE. FINALLY, HALF
A PERCENT.
>> AND THE FED DID SIGNAL THAT
MORE RATE INCREASES ARE ON THE
WAY AS IT TRIES TO TACKLE THE
WORST INFLATION FOR 3 QUARTER
PERCENT HIKE HASN’T BEEN SEEN
SINCE 1994. THESE RATE HIKES
WILL MAKE BORROWING MONEY FOR
HOMES, CARS AND OTHER
PURCHASES, MORE EXPENSIVE FOR
CONSUMERS.
>> CLEARLY TODAY, 75
BASIS-POINT INCREASE IS AN
UNUSUALLY LARGE ONE. AND I DO
NOT EXPECT MOVES OF THIS SIZE
TO BE COMMON. FROM THE
PERSPECTIVE OF TODAY, EITHER A
50 BASIS POINT OR A 75 BASIS
POINT INCREASE SEEMS MOST
LIKELY AT OUR NEXT MEETING. WE
WILL, HOWEVER, MAKE OUR
DECISIONS MEETING BY MEETING
AND WILL CONTINUE TO
COMMUNICATE OUR THINKING AS
CLEARLY AS WE CAN.
>> AND A ROLLER COASTER DAY ON
WALL STREET. STOCKS RALLIED
AFTER THE FED’S BIG RATE HIKE
OF THE DOW CLIMBED MORE THAN
300 POINTS. THAT’S ONE
PERCENT. NASDAQ IS UP 2 AND A
HALF PERCENT. S AND P 500
GROUP, ONE AND A HALF PERCENT.
WE’RE ASKING LOCAL BUSINESS
OWNERS ABOUT HOW INFLATION AND
THE LATEST INTEREST RATE HIKE
ARE AFFECTING THEM. NEWS. 4
JAX REPORTER JOE MCLEAN IS
LIVE IN RIVERSIDE TONIGHT IS
JOEY SPOKE WITH SOME WHO ARE
WORKING TO OPEN A BUSINESS
DURING THESE UNCERTAIN
ECONOMIC TIMES.
>> THEN THOSE ARE THE FOLKS
THAT ARE REALLY FEELING THE
BRUNT OF THIS INFLATION OF
THIS A RATE HIKE. I SPOKE TO
SOME BUSINESS OWNERS WERE
LOOKING TO EXPAND OR START A
NEW BUSINESS, INCLUDING
HOMESPUN IT’S BEEN OPERATING
IN ATLANTIC BEACH SINCE 2009,
BUT IT’S EXPANDING ITS
PLANNING TO OPEN THIS LOCATION
HERE IN RIVERSIDE. THEY SAY
THERE’S BEEN CHALLENGES, BUT
IT IS MOVING ALONG. JUST
HAVING TO FIND THINGS THAT ARE
AVAILABLE AND
>> AND CHANGE, YOU KNOW, SORT
OF HOW WE EXPECTED. THANKS TO
BE AROUND WHAT WE CAN GET.
CODY TO CLOSE IS BUSY GETTING
THE NEW LOCATION OF HOME SPAWN
UP AND RUNNING FOR AN EARLY
JULY OPENING. HE TELLS ME THIS
EXPANSION HAS SEEN DELAYS AND
LOGISTICAL CHALLENGES THAT HE
DIDN’T EXPECT. YEAH,
THROUGHOUT COVID WE HAD A HARD
TIME GETTING THINGS LIKE
PACKAGING.
>> CAUSE THAT NATURE WHEN IT
COMES TO OPENING THE NEW
RESTAURANT, WE’RE SEEING
DELAYS UP TO 6 MONTHS ON
EQUIPMENT. HE’S LIKE COOLERS,
ICE MAKERS AND WHAT NOT EVEN
HAVING TO LOOK AROUND, GET
CREATIVE TO FIND THINGS THAT
ARE ACTUALLY AVAILABLE NOW
THAT WE CAN USE IN ADDITION TO
A MONTHSLONG DELAYS FOR
EQUIPMENT AND SUPPLIES TO
CLOSE AS INFLATION AND THE
SUBSEQUENT INTEREST RATE HIKE
ARE DISCOURAGING MORE PEOPLE
FROM SPENDING MONEY WHICH CUTS
INTO EVERY BUSINESS VENTURE.
OTHER BUSINESS OWNERS SAY THEY
LIKELY WOULD HAVE RECONSIDERED
PLANS TO EXPAND. HAD THEY
KNOWN WHERE THE ECONOMY WOULD
TURN. CHRISTIAN TACKETT IS THE
LOCAL BUSINESS DEVELOPMENT
OFFICER FOR FLORIDA. FIRST
CAPITAL FINANCE CORPORATION.
IN OTHER WORDS, SHE HELPS
BUSINESSES GET FINANCED AND
GET STARTED. EVERY TIME THE
RATE UP LIKE TODAY, YOUR PAIN,
BUT JUST ONE TOP. AND IT WILL
LITERALLY.
>> I SEE YOU OUT OF, YOU KNOW,
THIS BY FRANK WHITE TACKETT
SAYS THESE STRESSFUL ECONOMIC
CONDITIONS DON’T PREVENT
BUSINESSES FROM STARTING, BUT
THEY DO MAKE IT FAR MORE RISKY
AND THEY REQUIRE EXTRA CAUTION
AND CONSIDERATION YOUR FINANCE
STOP, YOU KNOW, MAKE SURE
YOU’VE GOT THE BEST POSSIBLE
TERMS. YOU CAN GET.
>> YOU KNOW, FIXED INTEREST
RATE. SO YOU KNOW EXACTLY
UPFRONT WILL STOP AND CATCH.
YOU KNOW, YOU’VE GOT TO HAVE
CASH TO WEATHER THE STORM US.
>> ANOTHER THING BUSINESSES
HAVE TO DECIDE IS HOW MUCH OF
THAT INCREASE COST DO THEY
PASS ON TO THEIR CUSTOMERS WHO
ARE ALREADY SEEING INCREASED
COSTS ATTACK? IT SAID IF
YOU’RE CONSIDERING A STARTING
OR EXPANDING A BUSINESS RIGHT
NOW, SHE SAID IS CRUCIAL TO
EXPLORE ALL OF YOUR FINANCING
OPTIONS, ESPECIALLY CRUCIAL.
NOW SHE SAID YOU CANNOT
THERE’S A LOT MORE
INFORMATION. WE HAVE THAT
INFORMATION. PARTICULARLY
ABOUT HOW TO GET FINANCING
THROUGH THE U.S. SMALL
BUSINESS ADMINISTRATION.
THAT’S ALL WE’RE GOING TO HAVE
THAT INSIDE THIS STORY ON OUR