After six years, the Federal Reserve announced the final draw-down of its bonding-buying program, known as quantitative easing, at its policy meeting in late October. Most economists expect the move will increase interest rates.
“Interest rates are going to start creeping up in 2015," says Neil Wessan (pictured), managing director at CIT Capital Markets. “The Fed is going to be concerned about the amount of money that’s been pumping into the system, which in the past has led to fairly high levels of inflation. They will try to take steam out of the system, and they’ll do that with rates.” For middle-market businesses, a rise in interest rates could potentially hurt profitability, according to Wessan.