US Economy Faces Painful Shift as Era of Cheap Money Ends

After nearly two decades of ultralow interest rates, the United States is entering a period of rapid readjustment. The world’s largest economy and most important financial system must now adapt to a new reality where borrowing is no longer cheap. For years, businesses, governments, and consumers built their plans around easy access to low-cost loans. This long stretch of cheap money encouraged spending, investment, and risk-taking. Now, as that era ends, the shift threatens to disrupt those foundations. The core risk is not a sudden crash, but a difficult transition. Many institutions and individuals have not prepared for higher costs. They will need to change how they borrow, save, and invest—quickly. The coming months will test the strength of the U.S. economy. The key question is whether it can adjust smoothly, or whether the exit from low rates will cause broader financial strain.