The Economy Got Used to Low Borrowing Costs. Their Exit Could Pose Risks.
- Posted on August 22, 2026
- Inflation (Economics)
- By The New York Times
- 3 Views
- 1 min read
The U.S. economy faces significant challenges as interest rates normalize after twenty years of accommodative monetary policy. Businesses and consumers have grown dependent on cheap borrowing, making the transition to higher rates potentially destabilizing. This adjustment period requires careful navigation by policymakers to avoid economic shocks while managing inflation expectations and maintaining financial system stability.
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The Economy Got Used to Low Borrowing Costs. Their Exit Could Pose Risks.
After roughly two decades of ultralow interest rates, a period of rapid readjustment is ahead for the United States, the world’s largest economy and most important financial system. continue reading...
