an agency Moody’s credit rating agency Reduced this Friday US debt securities forecastswhich occurs from Stable to negative while It maintained its rating on US debt at “Aaa” He announced in a statement.
Moody’s estimated that “in a context of high interest rates and without budget measures to reduce government expenditures or increase revenues” this could be expected. “Which “The US deficit remains significant, weakening access to credit.”
This downgrade to negative forecasts means the agency may downgrade the US debt rating in the future. The French news agency explained.
What did the US Treasury Department respond?
he American Treasure Response was made immediately Showing your “disagreement” with the change to the negative perspective.
The Treasury Undersecretary responded in a statement, saying, “The U.S. economy remains strong and Treasury securities are the world’s leading safe and liquid assets.” Wally AdeyemoReferring to government bonds.
The US budget deficit, released two weeks ago for the 2023 fiscal year ending September 30, It reached an abysmal amount of US$1.695 billion.
Due to the increase in interest rates initiated by the Federal Reserve to reduce inflation, the cost of debt for the United States increases significantly.
This means that US$879 billion in interest has been paid, US$162 billion more than was paid in 2022. The amount of debt currently exceeds the country’s GDP.
