https://ft.com/content/226b4ebc-f405-4e03-8b40-44cd9fbb69d0
Moody’s has lowered its outlook on the US’s credit rating to “negative” from “stable”, pointing to a sharp rise in debt servicing costs and “entrenched political polarisation”.
In a Friday update, the rating agency said that the change to its outlook reflected increasing downside risks to the US’s fiscal strength, which “may no longer be fully offset by the sovereign’s unique credit strengths”. Moody’s added that the drastic rise in Treasury yields this year “has increased pre-existing pressure on US debt affordability”.
It added that “in the absence of policy action, [it] expects the US’s debt affordability to decline further, steadily and significantly, to very weak levels compared to other highly rated sovereigns”.
@ISIDEWITH7mos7MO
What personal concerns or fears do you have about the impact of a nation's increasing debt and economic challenges on your future, and how might these influence your views on government spending and debt management?
@9GYGT7G7mos7MO
It will bring the taxes higher and they may cut back spending in other areas like education.
