Moody's Warns U.S. Could Lose AAA Credit Rating Over High Deficits and Political Gridlock
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Moody's warned the U.S. could lose its last AAA credit rating due to high deficits and lack of political will to address them.
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Markets shrugged off the warning as the issues were already well known. Two agencies already downgraded U.S. debt.
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A Moody's downgrade would be symbolic but may not have major economic impact. 2011 downgrade rattled markets more.
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Mounting U.S. debt is becoming less affordable with high interest rates. Rating reflects lack of fiscal discipline.
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Continued dysfunction in Congress on budgets/spending is concerning for long-term economic outlook.