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.
260 Articles
260 Articles
Moody's downgraded US credit rating: What does that mean?
Moody's Ratings on Friday announced a downgrade of the U.S. government's credit rating, moving it down a notch from the ratings agency's top tier amid concerns about the rising national debt, which could have implications for the larger market.Credit ratings are used by analysts to determine the creditworthiness of debt issued by a government or a corporation. Higher credit ratings at or near the top of the rating scale are viewed as less of a d…
Why the Bond Market Spells Bad News for Trump
Just weeks after easing his self-imposed tariff turmoil, President Donald Trump may soon face fresh economic turbulence that could derail his agenda. U.S. Treasury yields spiked on Monday, signaling investor jitters over the national debt—just as Trump tries to push through his “big, beautiful” tax bill that experts warn would add trillions to the deficit. The 30-year Treasury yield, which rise as the price of the bond falls, briefly rose above …
Credit rating downgrade triggers warning signs for U.S. economy
The growing size of the U.S. debt, and the concerns over how much more it will increase, is very much on the minds of investors, markets and lawmakers. The developments were tied in part to Moody’s announcement that it was downgrading the U.S. credit rating over concerns about large annual deficits, debt and rising interest costs. Amna Nawaz discussed more with David Wessel.
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