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
Massie Faces Trump-Backed Primary Challenge Kentucky Race

Massie vs. Trump: High-Stakes Showdown in Kentucky’s Pivotal Primary Race

Kentucky Republican Rep. Thomas Massie is preparing for a fierce primary battle…
Fernandina Beach family pushes for intersection safety after multiple crashes

Fernandina Beach Residents Demand Urgent Intersection Safety Measures Following Frequent Accidents

A family in Fernandina Beach is calling for crucial safety enhancements at…
A GIF of a strike on a

Hegseth Announces U.S. Strike in Eastern Pacific Aimed at Suspected Narco-Traffickers

Pentagon Chief Pete Hegseth announced on Wednesday that the U.S. military has…
How inflatable costumes ballooned at anti-Trump rallies due to a Portland protester's frog outfit

Inflatable Costumes Take Center Stage at Anti-Trump Rallies, Inspired by Portland Protester’s Frog Attire

In Portland, Oregon, a unique form of protest unfolded when Seth Todd…
Murder suspect arrested over 40 times before allegedly killing hotel guest

Shocking Pattern: Serial Offender with 40+ Arrests Charged in Hotel Guest Murder

In a startling case from North Carolina, a man with a lengthy…
Five Points businesses recovering after break-ins

Five Points Businesses Rebound Following Recent Break-Ins

Pattaya Thai is among several businesses in Five Points grappling with the…
Suspect Keon King charged with murder in death of Philadelphia woman Kada Scott; new details revealed

Philadelphia Tragedy: Keon King Faces Murder Charges in Kada Scott’s Death – Latest Updates Unveiled

PHILADELPHIA — Keon King, the man initially arrested in connection with the…
NFL's Roger Goodell's Weakness on Full Display With Response About Choosing Bad Bunny for Super Bowl

Roger Goodell Faces Criticism Over Bad Bunny Super Bowl Choice

NFL Commissioner Roger Goodell’s tenure appears overdue for an end, especially after…
Manhunt underway after college student attacked on campus following reported road rage incident: police

Authorities Launch Search Following Campus Assault on College Student Stemming from Alleged Road Rage Incident

Authorities at a Maryland university have initiated a manhunt after a student…
Chicago Little Village activity today: 1 arrested for battery of police officer near 26th, Whipple amid clash with feds

Tensions Rise in Chicago’s Little Village: Arrest Made for Assaulting Officer During Federal Standoff

In the heart of Little Village, a neighborhood in Chicago, tensions flared…
Miami Heat's Terry Rozier, Portland coach Chauncey Billups arrested in FBI probe

FBI Investigation Leads to Arrests of Miami Heat’s Terry Rozier and Portland Coach Chauncey Billups

Charges against Rozier and Billups are tied to two significant cases: one…
King Charles, Queen Camilla pray with Pope Leo in historic step for churches and welcome respite from Epstein scandal

King Charles and Queen Camilla Engage in Historic Prayer with Pope Leo, Offering a Church Unification Milestone Amid Epstein Scandal Distraction

In a landmark visit to the Vatican, King Charles III of Britain…