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
Arrests made in theft of Kristi Noem's purse and thousands in cash at Washington DC restaurant

Suspects Apprehended in Connection with Kristi Noem’s Purse and Cash Theft at D.C. Eatery

Two arrests have been made in the theft of a high-end Gucci…
Chicago police share new robbery, burglary, sexual assault alert in West Ridge

Chicago Police Issue New Alert About Robberies, Burglaries, and Sexual Assaults in West Ridge Area

CHICAGO (WLS) — There is a new alert about a series of…
Chicago weather today: Upper Midwest braces for severe weather with the potential for strong tornadoes

Chicago Weather Forecast: Upper Midwest Prepares for Severe Conditions, Possible Powerful Tornadoes in the Area

CHICAGO — The Chicago area was placed under a conditional threat for…
Chicago crime: Con artists claim to need donations for kids' funerals, steal thousands with tap-to pay in Ravenswood, Lincoln Park

Chicago Crime: Scammers Feign Needing Donations for Children’s Funerals, Steal Thousands Using Tap-to-Pay in Ravenswood, Lincoln Park

CHICAGO (WLS) — It usually starts in a store parking lot. You…
Mayor Brandon Johnson, CPD Superintendent Larry Snelling discuss curfew at meeting with 40 other American mayors in Chicago

Chicago Hosts Major Meeting: Mayor Johnson and Police Superintendent Snelling Talk Curfews with 40 U.S. Mayors

CHICAGO (WLS) — Forty American mayors and police chiefs met in Chicago…
Saquon Barkley hangs out with Donald Trump ahead of Philadelphia Eagles White House visit to celebrate Super Bowl victory

Saquon Barkley Spotted with Donald Trump Before Eagles Visit White House to Celebrate Super Bowl Win

PHILADELPHIA — Philadelphia Eagles’ Saquon Barkley is responding to backlash after he…
Quincy Avery, QB coach in NFL, talks about experiencing homelessness, breaking barriers in new Hulu doc 'The Quincy Avery Effect'

NFL Quarterback Coach Quincy Avery Shares His Journey from Homelessness to Success in Hulu Documentary ‘The Quincy Avery Effect’.

CHICAGO (WLS) — A new documentary on Hulu takes a look at…
ECSU campus shooting NC | 1 dead, 5 injured in on-campus shooting at Elizabeth City State University in North Carolina: SBI

Tragic Shooting at Elizabeth City State University: 1 Fatality, 5 Wounded in NC Incident

ELIZABETH CITY, N.C. (WTVD) — One person is dead and at least…
La Grange crash killed Brett Lane and Melissa Lane, Hinsdale couple, near Western Springs at 47th and Willow Springs Rd: police

Tragic Accident Claims Lives of Hinsdale Couple, Brett and Melissa Lane, in La Grange Near Western Springs at 47th and Willow Springs Road: Police Report

LA GRANGE, Ill. (WLS) — A serious west suburban crash killed a…
Mount Prospect native Chase Banolik runs 416 miles from Cairo, Illinois to Beloit, Wisconsin in journey dedicated his mother

Mount Prospect Local Chase Banolik Completes 416-Mile Run from Cairo, Illinois to Beloit, Wisconsin in Honor of His Mother

MOUNT PROSPECT, Ill. (WLS) — Mount Prospect native Chase Banolik, 28, did…
Vancouver Car Ramming: Seattle man recalls night, shares relief after deadly attack at Filipino festival

Seattle Resident Recounts Frightful Vancouver Car Attack at Filipino Festival and Expresses Gratitude for Safety

The deadly car ramming attack in Vancouver is sending shock waves through…
Ocean County, NJ wildfire 65% contained after consuming more than 15,000 acres, strong winds complicate firefighters' efforts

Ocean County, NJ Wildfire 65% Contained After Burning Over 15,000 Acres; High Winds Challenge Firefighting Crews

OCEAN TWP., N.J. (WPVI) — Firefighters continue to battle a wildfire in…