Moody's cuts USA outlook to negative, citing higher interest rates and deficits
- Moody's changed the outlook of the United States' debt to negative, increasing the chances of a credit rating downgrade, which could have negative implications for Americans' investment portfolios and borrowing costs.
- Moody's cited America's extraordinary political divide, including near defaults, government shutdowns, and an inability to exercise fiscal responsibility, as reasons for the negative outlook. They stated that building political consensus to address fiscal deficits appears extremely difficult.
- A potential downgrade of the US credit rating would cause US Treasury yields to rise, impacting various debts including mortgage rates and global contracts.
78 Articles
78 Articles
Moody's downgrades US debt rating outlook to negative
Moody's on Friday downgraded its outlook on United States debt to negative from stable, one week before crucial budget negotiations in Congress. For now, the agency has maintained its Aaa rating on US government debt. "In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody's expects that the US's fiscal deficits w...
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