Moody's downgraded the US credit rating, and the US lost its last AAA credit rating.
Moody's downgraded the US government's rating on Friday due to its huge fiscal deficits and rising interest costs. The company said that out-of-control budget deficits mean that the US government borrowing will accelerate and long-term interest rates will rise. In a report in March, the company said that even under the best-case scenario predicted by analysts, fiscal weakness seems likely to persist.
This move deprived the US of the last AAA credit rating among major rating agencies, as Fitch Ratings downgraded the US credit rating in 2023 and S&P Global Ratings did so in 2011.
In a statement, Moody's wrote, "Successive US governments and Congress have failed to reach an agreement on measures to reverse the trend of massive annual fiscal deficits and rising interest costs. We believe that the current fiscal proposals under consideration will not lead to substantial cuts in mandatory spending and deficits over multiple years."
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Source: https://www.toutiao.com/article/1832328762705995/
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