Local financial advisor: Fed rate cut could be ‘double-edged sword’

OMAHA, Neb. (WOWT) - Opening a business is no small feat.

"It's been a lot of ups and downs. Crying, thinking I wasn't even going to pass the two years," said owner Tammy Bitting of Ebony2Ivory Beauty Supply.

Nearing its fifth year now, her store has weathered COVID-19, supply chain issues, and inflation.

"It's a struggle," she said.

Beads that were 20 cents to purchase wholesale, now are a dollar.

"Something as small as that. It jumped up...Walmart can afford to not raise prices as high as I raise mine."

The Federal Reserve's latest half percentage point cut this month could be good and bad, according an Omaha-based financial advisor. Eric Faurote explained why.

"It really is a double edge sword," said Faurote. "If you are somebody who is borrowing and looking for credit this is going to be positive for you. If you're an older saver looking for safe and secure investments this is going to create a more challenging environment."

As someone looking to grow her business, Bitting hopes the Fed's latest move will help her do that.

"I would like to own my own building instead of leasing," she said.

Helping people is her favorite part of the job. Finances, not so much. She's currently paying off a loan she got a year ago.

Policymakers project interest rates will fall by another half percentage point by the end of this year then another full percentage point in 2025.

That could help bring another store of Bitting's to Millard.

She wishes there were more resources for small businesses.

"I would rather get a grant," she said. "But I just feel like I get that loan it gives me that opportunity to get more inventory in here."

Until then, she's not giving up she said.