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U.S. finance leaders adopt defensive shift as low-cost capital era ends

EditorAmbhini Aishwarya
Published 02/10/2023, 09:44 pm

U.S. finance leaders are signaling a defensive shift towards more prudent capital-allocation decisions as the era of low-cost capital comes to an end, according to the 2023 CFO Insights Report unpacked by U.S. Bank's Stephen Philipson on Monday. The survey, which analyzed responses from over 1,400 professionals, highlighted rising concerns about interest rates and regulatory changes, but also emphasized talent shortages, tech disruption, and high inflation as top challenges.

The report revealed that 23% of respondents expressed concerns about interest rates, while regulatory changes were a worry for 25%. Furthermore, the survey underscored the impact of a talent shortage and tech disruption on the finance sector, particularly in California.

Inflation also emerged as a significant challenge, with only 33% of respondents showing some confidence and a meager 6% displaying high confidence in managing inflation risks. This trend is especially concerning given the current economic climate and indicates a need for strategic planning and risk management among U.S. finance leaders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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