How embarrassing for President Joe Biden.
For the second time this year, the U.S. has received a downgrade.
Moody’s Investors Service trimmed the U.S. government’s rating outlook from stable to negative, alluding to growing fiscal risks threatening the country.
Here is what the agency said:
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues. Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.
Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability.”
The White House was displeased, choosing to pin the blame on “congressional Republican extremism and dysfunction.”
In August, Fitch cut the U.S. long-term foreign-currency issuer default rating from AAA to AA+ over “expected fiscal deterioration over the next three years.”
It is worth pointing out that the last time the U.S. government received a downgrade was during the Obama administration.
So much for Bidenomics.
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