>>Americans have become CREDITORS who make MORE money from higher rates."

Some have, but your link says this:

MarketWatch: Guides Banking America...

Americans Are Carrying Record Household Debt into 2024
U.S. household debt grew by $800 million from 2022 to 2023, including a 16.6% growth in credit card debt>

LOL. It goes both ways, yes! Problem is for those WHO OWE-- the folks who couldn't travel and buy a new before car --STILL can't travel and buy a new car. They struggled to pay their bills now they struggle a little more. At risk of insensitivity, the effect at the margin is less than you think: former McDonalds spending is on groceries, etc...

Meanwhile, the $6 and a half trillion in ready cash keeps piling up...for people with a propensity and availability to spend chunks of it. And as long as the present declining savings RATE doesn't drop in real terms...THAT PILE keeps growing. This talk about running out of pandemic cash misses the point--cash flows from a full employment, 8 million open jobs, economy have replaced every penny AND considerably more in the aggregate checking/money market pile. I believe it's the highest this cycle.

As the borrowers struggle even more. The Fed did its job marvelously well. But its time.