How should businesses cope with today’s higher cost of capital? Many executives and investors were flummoxed by last year’s interest rate increases. Indeed, when our colleagues surveyed 3,100 executives about forces that had disrupted their business last year, interest rates and inflation topped the list. When the executives were asked about threats to their business in 2024, interest rates and inflation again led the list, ahead of other issues such as politics, regulation, AI, or climate change.