Economic activity in the world’s largest economy remains robust despite increasing borrowing costs, defying expectations that higher interest rates would slow growth. Central banks have raised rates aggressively in recent years to combat inflation, yet consumer spending and business investment continue to outpace forecasts. Analysts warn that sustained high borrowing expenses could eventually strain households and corporations, but for now, demand shows little sign of cooling. The resilience raises questions about whether monetary policy is losing its traditional grip on economic momentum.
Rising borrowing costs so far show no sign of putting a brake on activity in world’s biggest economy
