The United Kingdom's unprecedented referendum vote to leave the European Union – more commonly known as the Brexit – has sent shock waves through international trade and commerce channels. Small business owners in the United States need to understand the potential repercussions that will accompany the Brexit.
Forbes recently reported that while there is plenty of uncertainty regarding the long-term market impacts of the Brexit, the U.S. dollar should remain strong given its already healthy stature in the global economy. The immediate impact, though, has been somewhat vague, especially in terms of the Federal Reserve.
According to the news provider, analysts were forecasting the Fed to hike rates on loans for the first time in a while early in July, but decided it will keep them the same. The source noted that the department could potentially raise rates at the end of July when they have their next meeting.
Small business owners might want to consider leveraging the support of local banks – rather than those traded on Wall Street – in the coming months, as these institutions tend to be better-protected against international economic turbulence.