SPOKANE, Wash. – Local business owners are expressing concerns about the impact of tariffs and other economic trends on their operations.
Ben Klundt, Principal and Financial Advisor with Ten Capital, sat down with NonStop Local’s Sean Owsley and shared insights on how these factors are affecting the regional economy.
Klundt noted that Spokane’s economy doesn’t always align with national trends.
“18 months to 24 months later tends to be when it hits us for whatever reason,” Klundt said.
He also commented on the Federal Reserve’s recent decision to cut interest rates by 25 basis points and remarked on the unexpected language used by Federal Reserve Chair Powell regarding future cuts. “A December rate cut is not a certainty,” he said.
Klundt emphasized the Federal Reserve’s focus on the labor market and unemployment. “If they’re seeing a strong labor market, I’m not sure that they’re going to necessarily continue to cut at the pace at which they were cutting,” he said.
He also touched on the recent layoffs and their potential connection to artificial intelligence (AI), highlighting that the labor market is a growing concern.
“Powell specifically said recent layoffs and their potential tie to AI and labor market is weakening,” Klundt said.
Regarding inflation, Klundt stated that it remains the Federal Reserve’s primary battle. “Inflation I think is coming down. Again the labor market I think is still very strong,” he said.
Klundt pointed out that Spokane’s unemployment rate runs higher than the national average. He shared that local business owners are still unsure of how tariffs will affect them.
“The impact of tariffs 9 to 10 months out is typically when we start to see the true impact of tariffs,” he said.
Supply constraints and profit margins are significant concerns for business owners. “A lot of people here locally have pretty slim margins,” Klundt said. “These people are in it because they love their community and they love their business.”
The full impact of these economic factors on local businesses remains to be seen. However, Klundt’s insights provide a glimpse into the challenges Spokane business owners are currently facing.
