Moody’s Downgrades U.S. Credit Rating to “Negative” From “Stable” Citing Large Fiscal Deficits

Moody’s has downgraded the U.S. credit outlook to “negative,” citing unmanageable fiscal deficits and worsening debt affordability. Following Fitch’s earlier downgrade, this move reflects deepening concerns over the U.S.’s financial health amidst political disputes and rising federal spending. Experts foresee persistent deficits and ballooning interest costs, with little hope for substantial fiscal reform before 2025. This bleak assessment adds pressure on an already strained bond market, raising alarms about potential government shutdowns and the urgent need for lawmakers to tackle the spiraling budget deficits.