Moody’s has downgraded the U.S.’s sovereign credit rating from Aaa to Aa1, citing mounting national debt and fiscal challenges. This move marks the first time since 1917 that a major rating agency has lowered its assessment of the U.S. economy. The downgrade creates potential for higher government borrowing costs, potentially impacting investor confidence in financial markets. Experts predict significant economic shifts as a result of this decision. While some doubt the validity of the Moody’s rating, the Treasury Department faces uncertainty and pressures from investors, with a possibility of increased borrowing costs. 2035 projections indicate a fiscal deficit reaching nearly 9% of GDP. The downgrade has further raised concerns about U.S. fiscal management, especially in the face of continued political gridlock on addressing the issue of large annual budget deficits.