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Are Rate Cuts a Bigger Risk or Reward for Affirm?
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The Motley Fool
Affirm is a buy-now-pay-later company, but it also has a card business and makes consumer loans.
A rate increase might allow the company to charge higher interstate rates, but it could also reduce consumer spending.
That's a net negative, with the far bigger risk that too many rate increases too quickly could tip the economy into a recession.
So, all in, Affirm is likely to support the call for rate cuts over rate increases.
And if rates move against the company, well, the stock could take a material hit if investor sentiment on the buy-now-pay-later model sours.