Moody’s Strips US US How Top Credit Classification | Debt news

Moody Dion was martyred, saying that we have repeatedly failed to end the annual financial deficit and the great annual benefits.

MOODY rankings stripped the United States government of its highest credit rating, noting the failure of successive governments to stop the high tide and religion, a sudden step that could make President Donald Trump’s efforts to reduce taxes and send ripples across global markets.

Friday, MOODY lower the rating of AAA-Standard Gold to AA1. “The successive American departments and Congress have failed to agree on measures to reflect the direction of the large annual financial deficit and the costs of increasing benefits,” she said because she changed her view of the United States to “stable” from “negative”.

He added that the United States “maintains exceptional credit power points such as size, flexibility and dynamism for its economy and the role of the US dollar as a global reserve currency.”

MOODY’s is the last of the three main rating agencies to reduce the credit rating of the federal government. Standard & Poor reduced federal debts in 2011, and followed Fitch in 2023.

In a statement, Moodyz said: “We expect the federal deficit to expand, as it reached nearly 9 percent of (the American economy) by 2035, an increase of 6.4 percent in 2024, and is due to the increase in interest payments mainly on debt, high spending on entitlement rights, and the generation of relatively low revenues.”

Extending the tax cuts of President Donald Trump for the year 2017Moody’s said that Republican -controlled Congress will add $ 4 trillion over the next decade to the Federal Basic Deficiency, which does not include interest payments.

White House of Communications Director Stephen Cheung’s reaction was at the classification level through a post on social media, where he ranked MOODY Economic Expert, Mark Zandy, due to criticism. Zandy was described as Trump’s political opponent.

“Nobody takes his” analysis “seriously. It has been repeatedly proven,” said Chiong.

Stephen Moore, the chief economic advisor of Trump and an economist at the Heritage Foundation, described this step as “impressive”.

“If the US backed bonds are not the triple assets, what is it?” He told Reuters.

The Treasury Ministry did not immediately respond to a request for comment from Reuters.

Bond fences of bonds

A disorganized political system was unable to address the large deficit in which the United States accumulated. Republicans reject tax increases, and Democrats are reluctant to reduce spending.

On Friday, Republicans in the House of Representatives failed to push a large group of tax exemptions and spending discounts through the Budget Committee. A small group of right-wing Republican lawmakers, right-wing, joined more severe discounts on Medicaid and green power curtains for President Joe Biden, in opposing this-a rare political offense for the Republican President.

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

Trump’s attempts to reduce spending through the Ministry of Governmental Efficiency at Elon Musk are not much lower than its initial goals. Attempts to raise revenues through customs tariffs raised concerns about the trade war, global slowdown, and homogeneous markets.

I left unanswered, such fears can lead to the leakage of the bond market and hinder the administration’s ability to follow its agenda.

The classification, which came after the market closed, sent revenues on treasury bonds up, and analysts said that it could give investors a temporary stop when the markets reopen them for regular trading on Monday.

“It is very surprising. This is great – the markets did not expect it at all,” said Tom de Galoma, the manager of prices and trading at Michel Financial in Utah.