US EditionMoody's downgrade intensifies investor worry about US fiscal path
- Moody's downgraded the United States sovereign credit rating from Aaa to Aa1 last week, signaling concerns over fiscal health.
- The downgrade reflects a sustained increase over more than ten years in the level of federal debt and associated interest costs, which have surpassed those of comparable countries.
- This move has sparked investor worries about fiscal stability and intensified political divisions, with Republicans divided on its significance.
- Moody's described its growth outlook as "very pessimistic" and highlighted the fiscal deficits approaching $2 trillion annually or over 6% of GDP.
- The downgrade raises questions about U.S. economic management but it is unclear whether it will prompt policy changes amid ongoing debates.
354 Articles
354 Articles
Journal Gazette & Times-Courier
America’s debt problem is also a retirement problem
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