Moody’s cuts America’s pristine credit rating, citing rising debt

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On Friday, Moody on Friday caused US sovereign credit rating to the country’s growing, concerns about the TT 36 trillion debt piles, which could complicate US President Donald Trump’s taxes and send waves through global markets, causing self -reliance.

Moody first gave the United States a ranking in 1919 its ancient ‘AAA’ and is the last of the three major credit agencies to reduce it.

The deduction through a notch in ‘AA1’ on Friday pursues the agency’s point of view about the independent fiscal deficit and high interest payments in 2023.

Moody said on Friday, “The US administration and the Congress have failed to agree on a major annual fiscal deficit and measures to change the trend of rising interest,” Moody said on Friday, “Moody said on Friday, as it had” negatively “its view of the United States.

The announcement criticized Trump’s close people.

Stephen Moore, a former senior economic adviser to Trump and a economist at the Heritage Foundation, called the move “provocative”. “If the US-backed official bond is not triple A-Ast, what is it?” He told Reuters.

White House Communications Director Steven Cheong reacted to the Down Grade through a social media post, which criticized Moody’s economist, Mark Zindi. He called Zindi a political opponent of Trump.

Zindi refused to comment. Zindi Moody is the chief economist of the analytics, who is a separate entity from the credit rating agency Moody.

Since returning to the White House on January 20, Trump has said he will balance the budget, while his Treasury Secretary, Scott Basant, has repeatedly said that the current administration aims to reduce the US government’s financing costs.

But efforts to increase the revenue of the administration and reduce costs have so far failed to persuade investors.

Trump’s Elon Musk’s department’s efforts to reduce costs through performance are far less than its initial goals. And efforts to increase revenue through taxes have raised concerns about trade war and global slowdown, rotating markets.

Without a check, such problems can mobilize the path of the bond market and hinder the administration’s ability to advance this agenda.

Dowan grade, which has come out after the market is near, sends more production to Treasury bonds, and analysts said that when markets for regular trade on Monday, it could give investors a break.

“This mainly increases the evidence that the United States has a lot of debt,” said Daryl Duffy, a professor of Stanford Finance. “The Congress will only have to discipline itself, either earn more income or spend less.”

Pay attention to the deficit

Trump is urging lawmakers in the Republican -controlled Congress to extend tax deductions of 2017, which was the success of the first term legislation, which non -party analysts say that the federal government’s debt will increase trillions.

The reduction occurred when the tax bill failed to clear the barrier of an important procedure on Friday, as the Hardline Republicans stopped the move from demanding the move to stop the move in an extraordinary political shock for the Republican president in Congress.

Moody said that under consideration, financial suggestions are unlikely to lead to a permanent, multi -year reduction in the deficit, and it is estimated that the burden of federal loans will increase by about 134 % of GDP by 2035, compared to 98 % in 2024.

Senate Democratic leader Chuck Shamar said in a statement on Friday, “The reduction of the United States’ credit rating in Moody should end the pursuit of their negligence for Republicans of Congress and Congress to pay their negligence.” “Sadly, I’m not taking my breath.”

The kit is after the rivalry was reduced by Fitch, which also reduced the US sovereignty in August 2023 through a mark, citing the expected financial malfunction and repeated loan ceiling negotiations that threaten the government to pay its bills.

After doing so after the Standard and Poor after the Fitch 2011 loan crisis, the United States was the second largest ranking agency to abolish its high triple-ranking rank. Referring to Republican legislators, Boston College economics professor Brian Bethan said, “They have had to make a reliable budget contract that leads to the deficit down.”

Market delicacy

When depositing financial support in the loan capital markets, investors use credit rating to evaluate the risk profile of companies and governments. In general, the low lender rating, the higher the financial support costs.