Moody's cut the US credit rating from AAA to Aa1 over debt payment concerns. The credit agency pointed to rising deficits across many presidencies lasting more than ten years. Moody's has kept the US at the top rating since 1917 but recently changed its assessment. Other major firms already lowered US ratings—Fitch in 2023 and S&P in 2011. Countries with poorer credit scores pay higher interest rates when borrowing money.
The White House blamed previous administrations for creating financial problems. According to Moody's estimates, federal debt will climb to 134% of GDP by 2035 from 98% last year. Despite these issues, America maintains economic strength and keeps its dollar as the main global currency. The downgrade came as lawmakers voted against President Trump's spending plan in committee. Recent reports showed the economy shrank 0.3% during January through March as imports increased.
The White House blamed previous administrations for creating financial problems. According to Moody's estimates, federal debt will climb to 134% of GDP by 2035 from 98% last year. Despite these issues, America maintains economic strength and keeps its dollar as the main global currency. The downgrade came as lawmakers voted against President Trump's spending plan in committee. Recent reports showed the economy shrank 0.3% during January through March as imports increased.
