On Monday, a key economic adviser to Trump dismissed the recent downgrade of the US credit rating by Moody’s, maintaining that he still considers the US economy to be rated triple-A.
In a discussion on Fox Business Network’s “Mornings with Maria,” Kevin Hassett, who leads the White House National Economic Council, was asked by host Maria Bartiromo about the drop from “AAA” to “AA1” in the US government’s credit ratings.
“Without a doubt, US debt remains the safest investment globally. There’s no debt I’d prefer over the US, so Moody’s can do what it wants,” Hassett responded regarding the downgrade.
He referred to Treasury Secretary Scott Bescent, who had explained that the downgrade reflects past actions tied to the spending practices of the Biden administration. “As Secretary Bescent pointed out, it takes a backward look and penalizes us for that reckless spending. But we are cutting costs. We are managing supply. There’s room for growth on the supply side,” Hassett noted.
“There are various reasons we believe we boast the best economy worldwide,” he added. “If we have the leading economy, we also have the best debt. That’s how I see it.”
Moody’s downgraded the US creditworthiness last Friday amid Republican efforts to pass extensive legislation aimed at cutting taxes and spending, which could add nearly $4 trillion to the federal deficit.
The agency pointed out worries about federal debt and rising interest rates, detailing a situation where federal spending has increased, crossing the $1 trillion mark for the first time last year. This represented about 13% of government expenditures.
In their statement, Moody’s expressed that the downgrade indicates “a higher government debt-interest payment ratio compared to a significantly elevated level than similar rated sovereigns.”
When questioned about the concerns from House Republicans regarding the increase in Trump’s so-called “big and beautiful bill” national debt, Hassett argued that lawmakers should always increase the debt ceiling to mitigate any threats to the government’s credit rating.
“I think the debt ceiling will rise alongside the ‘big and beautiful bills.’ It’s always going to go up,” he remarked.
