Treasury Secretary Yellen Says She Disagrees With Moody’s Downgrade on U.S. Debt

U.S. Treasury Secretary Janet Yellen has criticized Moody’s recent decision to downgrade the U.S. debt outlook from “stable” to “negative.” Yellen insists the U.S. economy remains robust, despite concerns about large fiscal deficits and rising interest rates impacting debt sustainability. She emphasizes the Biden administration’s commitment to a sustainable fiscal path, including deficit reduction plans. However, the looming threat of a government shutdown and the substantial federal budget deficit, nearly $1.7 trillion in fiscal 2023, highlight the challenges facing the U.S. economy.