Moody's Downgrades US Credit Outlook to Negative, Citing Rising Debt and Political Dysfunction
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Moody's downgraded US credit rating outlook from 'stable' to 'negative' due to rising deficits and debt costs amid political polarization.
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Key reasons cited include rising interest rates, divisive politics unable to address fiscal issues, persistently large deficits, and declining debt affordability.
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Downgrade raises concerns about US fiscal health and political stability, though maintains AAA rating for now.
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Biden administration rejects downgrade, blames Republicans, and defends economic agenda.
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Downgrade adds pressure on US government to resolve budget impasse and address long-term structural economic issues.