I remember when most of the “macro” bros said the US would never be able to raise rates because the US would default on its debt.
What happened to this narrative?
Discussion
I think most people with that view would say that they can't maintain higher interest rates or they won't be able to service the debt. We'll see if they keep rates "high". We'll see how well they're able to continue servicing the debt.
Also, the fact that real interest rates were not raised all that much, due to the historically high rate of inflation, matters.