Lates News

Moody's has downgraded the United States' sovereign credit rating from "Aaa" to "Aa1", becoming the last of the three major credit rating agencies to remove the top AAA rating for the US. Moody's stated, "Successive US governments and congresses have failed to agree on measures to reverse the annual large fiscal deficits and the growing trend in interest costs." Stephen Moore, former senior economic adviser to Trump and economist at the Heritage Foundation, called this move "absurd", saying, "If US-backed government bonds are not AAA-rated assets, then what is?" The White House communications director criticized Moody's economist Zandi for his anti-Trump political stance, saying no one takes his 'analysis' seriously and that he has been wrong multiple times. Senate Minority Leader Schumer issued a statement saying, "Moody's downgrade of the US credit rating should serve as a warning to Trump and congressional Republicans to stop recklessly pursuing deficit-increasing tax cut policies." Spencer Hakimian, CEO of hedge fund Tolou Capital Management, stated that if there is no economic news to increase demand for US debt as a safe haven, long-term US bond yields could rise due to this downgrade news.