Bad news for younger Americans: high interest rates are quietly handing older, asset-rich Boomers a massive raise while squeezing everyone with debt.

• Higher rates mean people who hold cash, CDs, and short-term Treasuries collect far more interest, and most of that money sits in accounts owned by people over 60.
• That extra interest income jumped by hundreds of billions a year, acting like a stimulus check for the wealthy instead of cooling the economy.
• Younger people with 7% mortgages and 24% credit card rates get punished, while their parents get paid — so the Fed hit the brakes and the gas at the same time.
• All that older spending keeps service prices high: cruises, restaurants, premium healthcare, and luxury travel are booming because Boomers can pay cash.
• Cash buyers now make up nearly 1 in 3 home sales nationwide and over half in some Florida markets, boxing out working buyers who need loans.

Outlook: Nothing short of the Boomer generation aging out is expected to unwind this wealth gap, so the divide between those who inherit and those who don't will likely keep widening.