Sunday, 20 Jul 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • VIDEO
  • ScienceAlert
  • White
  • Watch
  • Trumps
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Moody’s strips US of top-notch triple-A credit rating
Economy

Moody’s strips US of top-notch triple-A credit rating

Last updated: May 16, 2025 6:20 pm
Share
Moody’s strips US of top-notch triple-A credit rating
SHARE

Unlock the White House Watch newsletter for free

Your guide to what Trump’s second term means for Washington, business, and the world

Moody’s has downgraded the US credit rating from AAA to AA1 due to concerns about rising levels of government debt and a widening budget deficit in the country. This move by Moody’s comes as investors are increasingly worried about the US’s fiscal trajectory, with President Donald Trump’s Republican party pushing a budget bill that is expected to significantly increase debt over the next decade.

The agency cited concerns about federal deficits widening to almost 9% of GDP by 2035, up from 6.4% last year, primarily due to increased interest payments on debt, entitlement spending, and relatively low revenue generation. This downgrade marks the first time in history that the US does not hold a triple-A credit rating from at least one of the three major agencies.

Yesha Yadav, a professor at Vanderbilt Law School, described the Moody’s rate cut as a “brutal jolt” to the marketplace and a call for policymakers to focus on reforms to ensure that US credit remains a top-rated asset. Yields on US government bonds rose in response to the news, with the benchmark 10-year Treasury yield increasing to 4.49%.

The Republican budget and tax bill, known as the “Big Beautiful Bill,” failed to pass in the House of Representatives amid concerns about adding too much to the federal deficit. The proposed legislation aimed to extend Trump-era tax cuts, projected to add $4.2 trillion to deficits over the next decade, while making $663 billion in new cuts and seeking to raise approximately $1 trillion through tax changes.

See also  Mind Your Metaphors - Econlib

The Committee for a Responsible Federal Budget projects that the tax bill could add up to $5.2 trillion to the national debt over 10 years, with the current federal debt standing at $29 trillion. The administration believes that the tax cuts will boost growth, raise revenues, and lower the deficit, but critics warn about the long-term impact on the economy.

The downgrade reflects concerns about America’s ability to address its financial situation and has drawn warnings from the Federal Reserve and leading economists. Steven Grey, chief investment officer at Grey Value Management, described the downgrade as a result of years of fiscal mismanagement, while Ann Rutledge, former senior analyst at Moody’s, warned that it was a dire warning about the country’s financial future.

In conclusion, the Moody’s downgrade of the US credit rating highlights the urgent need for policymakers to address the growing debt and deficit issues facing the country. The move has sent a clear signal to the market about the challenges ahead and the importance of implementing effective financial reforms to safeguard the nation’s economic stability.

TAGGED:CreditMoodysRatingStripstopnotchtripleA
Share This Article
Twitter Email Copy Link Print
Previous Article Loneliness Is Inflaming Our Bodies—And Our Politics Loneliness Is Inflaming Our Bodies—And Our Politics
Next Article This European-Style Dress Is 40% Off on Amazon With Our Code This European-Style Dress Is 40% Off on Amazon With Our Code
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

What Modern Medicine Gets Wrong (with Marty Makary)

In his latest appearance on EconTalk, surgeon and author Marty Makary discusses his new book,…

September 16, 2024

Berkshire Hathaway’s cash fortress tops $300 billion as Buffett sells more stock, freezes buybacks

Warren Buffett's Berkshire Hathaway reported a staggering cash pile of over $300 billion in the…

November 2, 2024

Man stabbed to death in domestic altercation at Navy Pier beer garden

A tragic incident occurred at the Navy Pier beer garden on Sunday evening, resulting in…

June 29, 2025

‘Other People’s Money’ Team on the Story of Europe’s Biggest Tax Fraud

The highly anticipated drama series "Other People's Money" is set to make its world premiere…

February 5, 2025

Youthful Washington Spirit fall short in NWSL Championship, but ownership is building an undeniable contender

The Washington Spirit entered the 2024 NWSL season with a sense of uncertainty after missing…

November 24, 2024

You Might Also Like

William Blair Maintains a Buy Rating on Palo Alto Networks (PANW)
Economy

William Blair Maintains a Buy Rating on Palo Alto Networks (PANW)

July 20, 2025
Plug Power (PLUG) Surges 8.5% as Fuel Cell Market Begins to Boom
Economy

Plug Power (PLUG) Surges 8.5% as Fuel Cell Market Begins to Boom

July 20, 2025
I asked ChatGPT for Prompts To Find High-Income Side Gigs — Here are the 6 Best
Economy

I asked ChatGPT for Prompts To Find High-Income Side Gigs — Here are the 6 Best

July 20, 2025
I Asked ChatGPT How To Get Rich Off of Bitcoin — Here’s What It Said
Economy

I Asked ChatGPT How To Get Rich Off of Bitcoin — Here’s What It Said

July 20, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?