Monetary Policy

At 24, the New York-based independent film studio was founded in 2012. The same year the US Federal Reserve dropped the federal funds rate to near zero. The capital that financed Moonlight, Lady Bird, Hereditary, everything everywhere, all at once. And uncut gems was raised at interest rates so low that even risky art house film bets cleared institutional hurdles. By 2022, the central bank had reversed direction. The Federal Reserve raised interest rates 11 times in 18 months, taking the policy rate from near zero to above 5%. The cost of borrowing for risky businesses, like an independent film distributor whose hits are unpredictable, more than doubled. Investment funds withdrew from the indie film space. A 24 laid-off staff. Multiple smaller indies folded entirely.