The United States relegated the credit note from Moody’s for the first time in over one hundred years

The risk classification agency was the only one who kept a perfect vote for American debt

The US credit note was relegated on Friday 16, after the Moody Agency concluded that the growing level of public debt should worsen.

The relegation went to a level lower than the maximum degree AAA, which is underlined by experts as a criticism of the economic policy of President Donald Trump. Hours earlier, had put pressure on the Republican Party to adopt a legislative proposal that can add trillion dollars to the country’s tax imbalance.

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According to the New York Times, now all the first three risk classification agencies have stopped granting the United States as possible. Fitch had already relegated the American note in 2023, citing tax problems and Standard & Poor’s did the same in 2011.

The new relegation can have effects on the economy if investors require greater returns on government securities. This can increase the costs of consumption loans.

So far, however, previous relegations have had a more symbolic impact, explains the newspaper.

Still according to the times, Moody has assessed that both the Democrats and the Republicans have not been able to significantly contain the US debt, which already exceeds $ 36 trillions.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.