Federal Reserve official Neel Kashkari reiterated in a Fox News interview that inflation across the US economy remains stubbornly high. While public markets routinely rally on hopes of rapid interest rate cuts, hawkish commentary from central bankers underlines that the fight against inflation is far from over.
For venture capital, private equity, and startup funding, this persistent macro narrative directly dictates the cost of capital. Elevated benchmark rates keep discount rates high, compressing private valuations and forcing early-stage equity to compete with attractive yields in far safer, traditional asset classes. The era of cheap money is not returning to bail out stretched capital structures.
For founders raising today, this means runway and capital efficiency trump vanity top-line growth every time. For backers placing £500 or £50,000 into private deals, sticky inflation demands a stricter underwriting discipline: focus on companies with genuine pricing power, realistic unit economics, and a short, credible path to profitability.