Moody’s credit rating agency withdrew the highest credit rating rating USA. On Friday, Moody’s agency lowered the country’s credit rating from the highest level of AAA to Aa1. The credit rating agency has given an increase in sovereign debt and the interest that the United States has to pay on its debt as a reason.
Over the years, US governments and legislature have not taken action against "the trend of large yearly budget deficits and rising interest costs," said Moody's. The current budget plans besides do not indicate the anticipation of reducing government spending and deficits in the world's largest economy.
The White home reacted furiously. Communications manager Steven Cheung criticized Moody’s chief economist, Mark Zandi. Cheung wrote on platform X that he is simply a political opponent of the president of the United States Donald Trump: “No 1 takes his ‘analysis’ seriously.” Many times these theories proved to be wrong.
Moody’s is the last of the 3 major rating agencies to retreat its highest rating to the United States. S&P and Fitch have done so in erstwhile years. Moody's current decision is bad news for US president Donald Trump.
Also on Friday, the president's plans for taxation cuts had already failed in the home of Representatives' Budget Committee due to opposition from Trump Republican organization politicians. Trump wants to prolong taxation cuts, any of which have already been passed during his first presidency in 2017. However, experts say that these plans may consequence in over 5 trillion dollars of additional US debt over a decade.
This is displeasure among many Republicans. 5 Republican members of the home of Representatives' Budget Committee so refused to support Trump and, together with the Democrats, blocked the adoption of plans.
