This is a subscriber-only article. Join Entrepreneur+ today for access

Learn More

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Smart Moves Check out these wise ways to benefit from today's low interest rates--without hurting tomorrow.

By Rosalind Resnick

Opinions expressed by Entrepreneur contributors are their own.

Question: Now that the Federal Reserve is cutting interest rates to boost the economy, how can I take advantage of this trend to lower my cost of capital?

Answer: While the Fed's recent rate cuts have been a boon to business owners and consumers alike, this is not the time to go on a borrowing binge to build your business. Despite the liquidity crunch caused by the subprime mortgage meltdown, the Fed must balance its desire to stimulate the slowing U.S. economy with the risk of igniting inflation and choking consumer demand.