Share this @internewscast.com

Moody’s Investors Service on Friday lowered its ratings outlook on the United States’ government to negative from stable, pointing to rising risks to the nation’s fiscal strength.

The ratings agency has affirmed the long-term issuer and senior unsecured ratings of the U.S. at Aaa.

“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”

Brinkmanship in Washington has also been a contributing factor, Moody’s said.

“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 ratings agency said.

As far as keeping the nation’s ratings at Aaa, Moody’s said that it expects the U.S. to “retain its exceptional economic strength.” “Further positive growth surprises over the medium term could at least slow the deterioration in debt affordability,” the agency said.

“While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the shift to a negative outlook,” said Deputy Secretary of the Treasury Wally Adeyemo in a statement. “The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset.”

Moody’s move to cut its outlook arrives as Congress faces the looming threat of a government shutdown once more. For now, the government is funded through Nov. 17, but lawmakers in Washington remain at loggerheads over a bill ahead of the deadline.

Newly elected House Speaker Mike Johnson, R-La., has indicated that he will release a Republican government funding plan on Saturday, a move that would permit members time to read it before an expected Tuesday vote on the measure.

But his plan to fund certain parts of the government through Dec. 7, and other parts through Jan. 19, known as a laddered continuing resolution, or CR, is dead on arrival in the White House and in the Democratic-controlled Senate.

“Moody’s decision to change the U.S. outlook is yet another consequence of Congressional Republican extremism and dysfunction,” White House press secretary Karine Jean-Pierre said in a statement.

Back in August, Fitch cut the U.S. long-term foreign currency issuer default rating to AA+ from AAA, citing “expected fiscal deterioration over the next three years,” as well as an erosion of governance and a growing debt burden.

Feuding in Washington was also an issue. “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said at the time.

Share this @internewscast.com
You May Also Like

Boasberg Admits He Doesn't 'Have the Power' to Stop Trump Deportation Flights in Huge Friday Night Ruling

In a Friday night hearing, U.S. District Judge James Boasberg said…

Pete Hegseth suffers yet another major blow as Pentagon is sent into ‘chaos’ over Signal chat fallout

The Pentagon is reeling as Defense Secretary Pete Hegseth faces growing instability…

rewrite this title Universal Epic Universe is the theme park resort's biggest bang yet in Florida

ORLANDO, Fla. – From Harry Potter to Super Mario Bros. to Frankenstein’s…

LeBron James’ youngest son, Bryce, signs with Arizona

Bryce James, the second and youngest son of LeBron James, is officially a member of the Arizona Wildcats’ 2025…

Congress members pay an unofficial visit to Syria as U.S. mulls sanctions relief

DAMASCUS, Syria — Two Republican members of the U.S. Congress were in…

Senate Democrats who took heat for government shutdown vote now feel vindicated

When a group of Senate Democrats helped pass a government funding bill…

Illinois-Indiana border: Indiana takes a first, and long, shot at redrawing state lines to acquire parts of Illinois

INDIANAPOLIS — Indiana is taking a first step toward acquiring parts of…

Fyre Festival 2 artist reveals secrets of Billy McFarland’s botched event plans and how he’s left them hanging

The infamous Fyre Festival tried its luck for a second time before…

Bandit arrested for nine grand larceny pattern in NYC

A bougie bandit has been arrested for stealing $20,000 of booty from…

The Mountain city where thousands are selling their million-dollar homes amid ‘cloud of uncertainty’

Colorado Springs, once one of the most sought-after housing markets in the…

rewrite this title Members of burned LA church bear a cross through their devastated neighborhood to mark Good Friday

PACIFIC PALISADES, Calif. – Carrying a tall wooden cross on his shoulder,…

Abrego Garcia's Wife Is Finally Asked About Domestic Abuse – Her Answer Tells You All You Need to Know

Democrats have been trying to paint Kilmar Abrego Garcia as a…