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.
Key Points
- U.S. fiscal strength on track for decline
- Debt to GDP ratio projected to rise to 130% by 2035
- Interest payments to account for 30% of revenue by 2035
Pros
- Detailed analysis of U.S. fiscal situation
- Highlights potential economic risks and challenges
Cons
- Negative outlook for U.S. fiscal health