The U.S. continues to show strong economic growth, despite a sharp rise in interest rates. For more than a year and a half, the Federal Reserve has been trying to get a handle on the decades-high inflation. Despite this, Americans continue to spend money, leading inflation to remain high.
This could result in more interest rate hikes. Even when the current rate hikes are over, the Fed says it expects interest rates to stay high longer. That’s bad news for consumers and cash-strapped businesses, but it’s great news for business development companies (BDCs) like OFS Capital Corp (NASDAQ:OFS).
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