Moody's Downgrades U.S. Credit Outlook to 'Negative' Amid Fiscal Worries and Political Dysfunction
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Moody's lowered its credit outlook for the U.S. from "stable" to "negative" due to fiscal concerns and political dysfunction.
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This follows earlier downgrades by other ratings agencies like Fitch and S&P amid debt ceiling fights.
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Downgrades could lead to higher borrowing costs and impact markets, like previous downgrades.
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A default would be catastrophic - harming U.S. reputation, stopping payments, and potentially causing a recession.
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The White House blamed Republicans, while Republicans blamed Democrats' spending for the downgrade.