Moody softened Credit rating The USA, leading it down the AA1 from the highest triple grade, over the government mass budget deficit and high interest rates.
This move sees that the mood in the mood with the other two main credit rating agencies, and which they both crossed our time.
The agency said that the government did not see the actual effort to reduce consumption and expected that the fiscal performance of the U.S. will worsen compared to other highly developed economies.
Furthermore he said that the president Donald TrumpThe tariffs will significantly violate the long-term growth of the nation and expect the federal burden of debt to increase to about 134 percent of GDP until 2035. years.
“This one-notch meeting on our 21-ordained rating scale reflects more than a decade in relation to state debtors and interest on the levels that are significantly higher than nominal sovereignty,” Moody said.
The United States has a huge budget deficit of $ 1.05 trillion, compared to the date, and 13 percent more than a year. Interest costs for state debt are still climbing due to higher rates and higher debt for finance.
While the American Congress, the Federal Government Branch is responsible for adjusting the level of tax and consumption, has adopted balanced budgets for the four-year period at the turn of the century, in the 2001 deficit year. Years.
But despite the warnings from fiscal hawks, the Republicans in Congress can have negative effects, and most of the development of tax cuts that have been starving for increased consumption on defense and other priorities, while largely ineffects and health care costs.
Economic incentive accounts brought during the large recession and pandemic, as well as the costs of two decades after terrorist attacks on New York and Washington, to make legal publishers, because the GOP refused to support any account that increases on any reason.
However, the United States continued to keep the top grade of all three credit agencies by 2011. year, when the Republican-controlled house was driven by drainage with a democratic controlled senate and obama administration that threatened the first place in American sovereign debt.
At that time, the standard and poor made an unprecedented decision to share us on a rainbow from the AAA grade until the next highest level, AA +.
S & P at that time quoted a ceiling debt crisis in which he states to reduce “[ed] [their] See that the efficiency, stability and predictability of American politics and political institutions “” weakened in the time of current fiscal and economic challenges “.
The Agency stated that their prospects were based on “difficulties in bridging the bays between fiscal policy,” adding later that “political biting” and policies become less stable, less efficient and less predictable than we had previously believed. “
More than a decade later, Republicans have tried to use the country’s legal ceiling in the country as a weapon against the Second Democratic President, Joe Biden, led to another meeting and another drop in the US Credit Rating, by assessing the US loan.
The Agency stated “constant deterioration of management standards in the last 20 years, including fiscal and debt things” that eroded confidence in fiscal management. “
Without superior credit rating, the U.S. government will have to pay higher interest rates when borrowing funds, which could make it difficult to meet their own needs without reducing taxes or tax collection.
Announcement that a third of the three credit agencies reduced American debt from the highest possible rating came only hours after the Budget Committee failed to improve “One big, beautiful account“It contains a lot of trump cards for legislative agendas.
The defeat does not probably mean the end for an account, but will require Republicans to regroup and rewrite to meet conservative concerns MEDICAID RAD REQUIREMENTSThe rolling of renewable renewable energy taxes passed under Joe Biden President and making a deeper reduction of consumption.
Republicans hope to pass the account – which would expand Trump taxes for 2017, it increases for the implementation of immigration implementation and energy research – through the process of reconciliation, which would allow them to leave in the Senate in the Neighborhood.
The White House did not immediately answer the comment request.