Moody's ratings agency has downgraded the United States from its AAA rating, citing concerns over an escalating debt, which currently stands at $36 trillion—around 120 percent of the country’s GDP. This move signifies a loss of the US's reputation as a prime borrower, previously deemed a safe haven for investments. As President Trump advocates for a major tax cut, critics highlight that this could exacerbate the already significant deficit, raising concerns about the long-term economic implications of such fiscal policies.
Moody's has downgraded the United States from its top-notch AAA rating, attributing it to growing debt of $36 trillion and rising debt service costs.
With the US debt now at almost 120 percent of gross domestic product, Washington has lost its pristine reputation as a borrower.
President Trump is promoting a tax cut package that critics warn could add trillions more to the already ballooning deficit.
The downgrade by Moody's marks a significant shift, as the US debt has long been considered one of the safest investment options in the world.
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