AED
USD 0.27
AFN
USD 0.01
ALL
USD 0.01
AMD
USD 0.00
ANG
USD 0.55
AOA
USD 0.00
ARS
USD 0.00
AUD
USD 0.66
AWG
USD 0.56
AZN
USD 0.59
BAM
USD 0.55
BBD
USD 0.50
BDT
USD 0.01
BGN
USD 0.55
BHD
USD 2.65
BIF
USD 0.00
BMD
USD 1.00
BND
USD 0.74
BOB
USD 0.14

Moody’s changes its outlook for U.S. credit ratings to negative AAA .

Moody's changes its outlook for U.S.

0 26

On Friday, Moody’s agency altered its perspective on the United States government’s credit ratings, shifting from a “stable” outlook to a “negative” one. The rating agency indicated its anticipation of the U.S. fiscal deficit persisting at an exceptionally high level, significantly diminishing the capacity to manage debt. Moody’s, however, upheld its “AAA” long-term and unsecured credit ratings.

Expressing his opinion, Steven Ricchiuto, Chief Economist at Mizuho Securities USA LLC, remarked, “I believe it was a mistake by Moody’s part to make this announcement on a Friday afternoon because it means that Japan will be the initial market to respond. Given that the Japanese hold a substantial amount of U.S. debt and their market is less liquid, this could lead to a more immediate external market reaction on Sunday evening.”

The White House Press Secretary also commented, stating, “Moody’s decision to alter the outlook for the United States is another consequence of the dysfunction within the Republican-led Congress. Moody’s points to various recent actions by Republicans in Congress that have repeatedly pushed us to the edge of a government shutdown and congressional closures.”

The U.S. Deputy Treasury Secretary stated, “While Moody’s maintains the U.S. AAA rating in its statement, we disagree with the shift to a negative outlook. The U.S. economy remains robust, and Treasury securities are globally recognized as secure and liquid assets. The Biden administration has showcased its commitment to financial sustainability, including a deficit reduction of over a trillion dollars as outlined in the debt limit agreement in June. Additionally, President Biden’s budget proposals aim to reduce the deficit by approximately $2.5 trillion over the next decade.”

You can now benefit from LDN company’s services through the LDN Global Markets trading platform.

Leave A Reply

Your email address will not be published.