• Last Friday, the much-awaited annual economic policy symposium in Jackson Hole, attended by top economists from across the US, took place. Federal Reserve Chairman Jerome Powell took to the stage and expressed that the central bank will keep increasing interest rates high to reduce inflation levels.

• The rationale behind this policy is that a high interest will make it difficult to borrow money which would decrease the demand and sellers will have to reduce prices and hence, inflation. As a result, the Fed’s interest rate has been raised to a range of 2.25% to 2.5% from almost zero in March.

• Momentarily, higher rates will also tighten banks’ lending policies. These changes will impact women and minority-owned businesses the most since they tend to have a smaller cash flow and less history of servicing debt. Hence, businesses and innovation will suffer a huge blow.