I assume US debt will be downgraded to AA later this year. My question: how much will interest rates rise with a downgrade to AA.
“I assume US debt will be downgraded to AA later this year. My question: how much will interest rates rise with a downgrade to AA.”
Probably a point and a half to 2 points. Look at other Sovereign Debt countries with AA ratings.
What will immediately happen is that mortgage rates will jump fast. Housing will be hit hardest right off the bat. Then car loans.
Remember the old saying from the past:
“Use it up, ware it out, make it do, or do without!”
That will be the new motto fo the US.