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US economy strains as borrowing costs hit 5%, ending 15 years of cheap money.

Market News
07 Oct 2026
24/7 Wall Street
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Bearish
US economy strains as borrowing costs hit 5%, ending 15 years of cheap money.

After 15 years of near-zero interest rates, the US economy faces challenges as the 10-year Treasury yield exceeds 5%, the highest since 2002. This rise increases borrowing costs for corporations, homeowners, and the government, with $4.3 trillion in corporate debt maturing by 2031 needing refinancing at much higher rates. Mortgage rates have also surged, reducing homebuyers' purchasing power and slowing the housing market. Investors are advised to focus on companies with strong balance sheets and be cautious of those with heavy debt maturing soon, as the era of cheap money ends and financial pressures mount.

The US economy's shift from cheap money is highlighted by the 10-year Treasury yield surpassing 5%. For readers following the Financials sector, here is Pluang's market snapshot as of Oct 07, 2026 22:22 WIB: out of 85 priced US Financials stocks, 8 rose and 77 fell. Deutsche Bank AG (DB) declined 4.87% to USD 33.42, Prudential PLC (PUK) dropped 4.67% to USD 23.45, and Western Alliance Bancorporation (WAL) fell 4.55% to USD 72.63, with typical hold times ranging from 3 to 118 days on Pluang.

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