Small businesses paid an average 8.2% on short-term loans in September, according to the National Federation of Independent Business survey, as Fed officials Hammack and Waller split on whether more tightening is needed before Wednesday's consumer price data.
Cleveland Fed President Beth Hammack, a 2026 FOMC voter who dissented for a hike in July, told NABE she would rather make smaller policy adjustments quickly than wait and risk a larger course correction. Source
Policymakers debate further tightening in the abstract. The National Federation of Independent Business (NFIB) survey shows who actually pays for it. A net 8% of owners paid a higher rate on their latest loan in September, up 4 points and the highest since June 2025. The average short-term loan rate rose 0.7 points to 8.2%, more than 4 points above the 3.75% to 4.00% fed funds range, and that after a single 25 basis point hike.
