Interest rates are normal

 

They are right where they have been heading for years. 

They are not recently up because of optimism, as Krugman would say.  Paul is still doing the Hicksonian jump shift fraud.

They have recently jumped because it takes time for the Fed to find the next market to tax. Note that foreign Treasury holders have left the scene and the dollar is down to 2018 levels.

And the hunt for yield is entirely the Fed looking for taxes to save the Swamp. The result is deflation.