Moody’s Downgrades U.S. Credit: Impacts Expected on Borrowing Costs

Moody’s has downgraded the U.S.’s credit rating, impacting market confidence and potentially leading to higher borrowing costs for the government. The move reflects ongoing fiscal challenges, including high interest payments and entitlement spending. While Treasury Secretary Scott Bessent aims for a 3% deficit-to-GDP ratio, Moody’s points to a lack of agreement on fiscal measures to reduce deficits. This downgrade could lead to increased rates on U.S. debt, potentially signaling economic instability. The event raises questions about the future of US financial policies and global financial dynamics.