Moody’s Downgrade of America’s Credit Rating
Moody’s downgrades America’s credit rating due to concerns over growing federal debt under Donald Trump’s tax-cutting plans, leading to increased borrowing costs and market jitters.
Key Points
- Moody’s downgraded America’s credit rating due to concerns over the $36 trillion federal debt pile and Trump’s tax-cutting plans.
- US borrowing costs surged after the downgrade, with 30-year Treasury yields rising above 5%.
- Investors see the US as riskier than other economies, potentially leading to market instability.
- Trump seeks to push through new tax cuts, adding $3 trillion to $5 trillion to the nation’s debt over the next decade.
Pros
- Increased awareness of the impact of growing federal debt on credit ratings and borrowing costs.
Cons
- Market jitters and increased borrowing costs for the US and UK.