Moody's Predicts Continued Decline in U.S. Fiscal Strength

Moody's predicts continued decline in U.S. fiscal strength due to widening budget deficits and less affordable debt. The report highlights rising debt to GDP ratio and interest payments as a percentage of revenue. Other ratings agencies have already downgraded the U.S. sovereign rating, citing similar concerns.

Federal Reserve and U.S. National Debt

Fund manager Freddie Lait believes the Federal Reserve may cut rates to help the U.S. cover interest payments for the national debt. U.S. government spending on interest payments is expected to climb to $870 billion this year.