President Trump has publicly voiced his disagreement with Moody’s decision to downgrade the U.S.’s credit rating from AAA to Aa1, citing financial outlook concerns as a contributing factor. While Treasury Secretary Scott Bessent suggests skepticism about the potential impact on borrowing costs and fiscal policy debates, Moody’s explained their reasoning behind the downgrade, highlighting the factors of rising entitlement spending and increased interest payments on debt. The decision is expected to influence market volatility, particularly in US Treasuries and bond yields, although no significant changes have been observed yet. It could also affect discussions on fiscal policies such as extending tax cuts.