BIDENOMICS: Moody’s Cuts Outlook on US Government to Negative… Developing
Bidenomics.
Moody’s Investors Service cut the US’s outlook to negative on Friday.
Moody’s lowered its ratings outlook on the US government citing high interest rates, government spending and deficits.
CNBC reported:
Moody’s Investors Service lowered its ratings outlook on the United States’ government to negative from stable, pointing to rising risks to the nation’s fiscal strength.
The ratings agency has affirmed the long-term issuer and senior unsecured ratings of the U.S. at Aaa.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”
Earlier this year Moody’s cut its outlook for the entire US banking sector to negative and put six banks on ‘downgrade’ watch.
