Moody, America
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Investors sold stocks and bonds after Moody’s downgraded the U.S. credit rating, potentially complicating negotiations around Republicans’ tax plan.
Moody’s gave the U.S. a negative outlook—but markets didn’t flinch. This isn’t about default. It’s about trust, and why credibility erosion is the real risk.
The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.
After the United States lost its last perfect credit rating on Friday, Republicans and Democrats responded by pointing fingers at each other.