Kathmandu. Rating agency Moody’s has devalued the US sovereign credit rating due to concerns about america’s growing debt pile of $ 3.6 trillion.
Moody’s in a ratings assessment press release on Friday devalued President Donald Trump’s tax cut efforts, pointing to the risk of further complicating the debt burden and creating ripples in global markets.
Moody’s first gave the United States its old “Triple A” rating in 1919. This is the last of the three major credit agencies to devalue this rating. The one-point cut was reduced by one point to “Double A One”, another devalued rating since the change in the agency’s sovereign outlook in 2023 due to a broad fiscal deficit and high interest payments.
“Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and rising interest costs,” Moody’s said in a press release, as it changed america’s view from “negative” to “stable.”
The announcement has drawn criticism from people close to Trump.
Stephen Moore, trump’s former senior economic adviser and heritage foundation economist, responded to the move as “outrageous”, the Asia Insurance Post reported. “What if U.S.-backed government bonds aren’t “Triple A” assets?” he asked Reuters.
White House Communications Director Steven Cheung responded to the devaluation through social media posts, calling Moody’s economist Mark Zandy alone for criticism, accusing Jandy of being anti-Trump.
Jandi is the chief economist at Moody’s Analytics, a separate entity from credit rating agency Moody’s.
Since returning to the White House on January 20, Trump has said he will balance the budget. His Treasury Secretary Scott Besant has repeatedly said that the current administration aims to reduce the us government’s funding costs.
