Moody's Downgrades US Credit Outlook to Negative, Citing Rising Debt and Political Dysfunction
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Moody's lowered its outlook for the US's credit rating to negative on Friday, citing concerns about political polarization and the government's growing debt burden.
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The move comes amid recent turmoil in the Treasury bond market, which has seen yields spike higher this year.
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Moody's cited 3 main factors for the negative outlook rising interest rates, the expanding US deficit, and partisan political deadlocks in Washington.
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The White House criticized the move, blaming Republican extremism for fiscal dysfunction.
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The initial market reaction was muted, but the downgrade could stoke longer-term worries about the US's ability to manage its enormous $33 trillion debt pile.