Fed CFO survey: rising rates top concern as price plans jump

U.S. finance chiefs have pushed monetary policy to the top of their worry list even as they plan to raise their own prices harder — a signal that the Fed’s inflation fight is landing in the boardroom as higher borrowing costs, not just as CPI headlines.

The Q3 CFO Survey from the Richmond and Atlanta Feds and Duke Fuqua, fielded Aug. 17–Sept. 4 among about 500 firms, found roughly 20% put current rates or further hikes as their top concern, up from under 15% last quarter. Expected own-firm price growth for 2026 jumped to 5.3% from 4.7% in Q2; 2027 price plans rose to 4.5% from 4.1%.

Optimism about the U.S. economy still looks solid at the headline level, but the stress is concentrated in smaller and cash-tight firms. About a fifth of small companies said financing constraints are blocking expansion or making it harder to cover costs, and among firms not planning to invest, about 42% blamed unfavourable financing or a need to preserve cash — up from 32% six months earlier.

For Canada, the spillover matters: U.S. CFOs are still baking mid-single-digit price increases into plans while bracing for dearer credit — the same mix that tightens USD funding, weighs on the loonie when the Fed hikes, and keeps pressure on the Bank of Canada’s own path. The survey closed before last week’s quarter-point Fed hike, so the next read will show how much those higher rates bite.