Fitch’s downgrade of the U.S. debt rating has raised eyebrows among investors due to the climbing deficit and debt. This led to a surge in the 10-year Treasury bond yields over 4%, highlighting growing concerns over the U.S.’s financial stability. Without immediate measures to control spending, interest rates may spike. The U.S., which borrows in its currency, may not face an involuntary default given its ability to print money. But rising rates can constrain the U.S. from making significant fiscal adjustments without taking drastic actions, like slashing entitlements. If these measures aren’t adopted, borrowing costs will increase, potentially stifling private investment and decreasing stock values. While many believe that as debt rises, rates should also climb, this doesn’t consider the role of central banks in a global economy, which collaborate with governments to stabilize growth, manage inflation, and prevent financial downturns.