Moody’s, the rating agency, has downgraded the US credit rating from Aaa to Aa1, while maintaining a stable outlook. This decision is attributed to increasing US debt and the escalating costs associated with the federal budget.
“Repeated disagreements between US administrations and Congress regarding strategies to address the ongoing issue of significant annual budget deficits and increasing borrowing costs are concerning. We do not anticipate that meaningful reductions in spending and deficits will be realized in the current budget bill under consideration,” Moody’s stated, specifically referencing the tax cuts advocated by former President Donald Trump.
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