US Economy Faces Painful Shift as Era of Cheap Money Ends
The United States is entering a period of rapid readjustment as the decades-long era of ultralow interest rates comes to an end, forcing businesses, governments, and consumers to adapt to a new reality where borrowing is no longer cheap. [224957]
After nearly twenty years of easy access to low-cost loans, the world’s largest economy must now confront the consequences of this transition. The core risk is not a sudden crash, but a difficult period of change as institutions and individuals who built their plans around cheap money are forced to quickly alter how they borrow, save, and invest. [224957]
The coming months will test the strength of the U.S. economy, with the central question being whether it can adjust smoothly or whether the exit from low rates will cause broader financial strain. [224957]