The rating agency Moody’s estimated that “in a context of high interest rates and without budgetary measures to reduce government spending or increase income” it can be expected “that the United States’ deficits will continue to be very important, weakening access to credit.”
The agency Moody’s rating agency this Friday reduced the US debt note outlookwhich happens from stable to negative, while maintained its rating for US debt at “Aaa”, announced in a statement.
Moody’s estimated that “in a context of high interest rates and without budgetary measures to reduce government expenses or increase revenues” it can be expected “that “United States deficits continue to be very important, weakening access to credit.”
This lowering of the outlook to negative implies the possibility that the agency will reduce the US debt rating in the future. explained the AFP news agency.
What the US Treasury responded
He American treasure reacted immediately showing your “disagreement” with the change to a negative perspective.
“The US economy remains strong and Treasury securities are the world’s leading safe and liquid asset,” the Undersecretary of the Treasury responded in a statement. Wally Adeyemoreferring to government bonds.
The US budget deficit, released two weeks ago for fiscal year 2023 ending September 30, reached the abysmal sum of US$ 1,695 billion.
Due to the increase in interest rates launched by the Federal Reserve (Fed) to curb inflation, the cost of debt for the United States increases considerably.
This means that US$879 billion in interest was paid, 162 billion more than in 2022. The volume of debt currently exceeds the country’s domestic product.
Source: Ambito
