Moody’s Downgrades US Credit Rating Amid Concerns
On Sunday, Treasury Secretary Scott Bescent expressed confidence that economic growth under President Trump’s administration would surpass the national debt, downplaying Moody’s recent downgrade of the US credit rating. “I don’t give Moody’s much credit,” Bescent remarked during an appearance on CNN’s “State of the Union.”
He went on to argue that the tax bill currently being discussed in Congress is designed to foster economic growth that could outpace the country’s debt obligations.
Moody’s made a notable shift on Friday, lowering its assessment of the US credit rating from “AAA” to “AA1.” This change was attributed to rising sovereign debt levels and growing interest payments, signaling the conclusion of an era in which the US held a triple-A rating from all major credit agencies.
This downgrade reflects broader concerns about the US fiscal outlook, with the increasing fiscal deficit and interest obligations prompting discussions about tax and spending policies in Congress that may further exacerbate the financial situation.
In its statement, Moody’s commented, “All US administrations and Congress have not agreed to measures to reverse the trend of large annual fiscal deficits and interest growth.”
