Moody’s Lowers U.S. Credit Rating
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The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.
Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.
Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.
Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.