Hey there! Have you ever heard about tariffs? π§ They’re like taxes that countries put on things they buy from other countries. An expert named Drew Bernstein says that tariffs could cause some problems for new companies in the United States.
Let’s break it down. If tariffs make it harder to get stuff from other countries, prices in stores might go upβthat’s called inflation! π When prices rise, banks might increase interest rates to keep the economy balanced.
Now, when a company wants to grow big, they might have an IPO (Initial Public Offering). That’s when they sell shares of the company to the public in the stock market. But if interest rates are high, investing in new companies can be harder. π
So, tariffs could make it tougher for new companies to raise money and grow. That’s why Mr. Bernstein thinks tariffs might weigh on the US IPO market. Let’s keep an eye on how this unfolds! π
Reference(s):
cgtn.com