Commentary: How Much Further Can The Fed Push?

Higher interest rates haven't taken much of a bite out of American business so far. Although the Federal Reserve has increased rates six times in the past year, business investment is still going strong. Orders for capital equipment, excluding aircraft, rose by almost 13% annually through April, just slightly down from their growth rate through March. McDonald's Corp., for example, is forging ahead with a $1.9 billion global capital-spending plan, with most of the money earmarked for opening restaurants abroad.

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