In an interview with CNN, the United States Minister of Finance rejected the Downgrade rating from the American rating company Moody’s, reported on Reuters on Sunday, May 18, 2025.
“Moody’s do not believe much,” said Bessnt, quoted in the agency report.
This comes after the American rating company Moody’s reduced the long -term US government issuer and a higher unsecured evaluation to “AA1” from previous “AAA”.
Moody’s evaluation reduced
According to the previous Mint report, Moody’s Investors Service reduced the sovereign of the United States’s credit rating on Friday 16th May 2025 by the growing debt burden of $ 36 trillion.
The evaluation agency also reduced the long -term US government’s rating by one notch to “AA1” from “AAA” and revised its view of “stable” from the previous “negative” level.
Since 1919, Moody’s maintained its US government’s evaluation at the level of “AAA” and this revision refers to the last of the three main credit companies to reduce American credit rating.
“Subsequent US administrations and Congress did not agree on measures to reverse the trend of large annual fiscal deficits and rising interest costs,” Moody’s said, according to the report.
The rating company also indicated that if the US government returns to fiscal discipline through increased income or reduced expenditure, this may lead to an upgrade in the future.
Moody’s outlook for US economy
Although Moody’s reduced the evaluation of the sovereign loan of the United States, the company emphasized some credit strengths such as high size, durability, high average income and strong innovation results.
The rating company expects the United States to maintain its institutional strengths, including the constitutional department of powers and effective, independent monetary policy from the US federal reserve.
They also quoted how the US dollar still prevails as a dominant reserve currency in the world that gives the US government strong support despite the high fiscal deficit in the national economy.
According to Moody report, it is reportedly not very likely to find any trusted alternative to the US dollar as a global reserve currency. Moody’s, however, also expects the US to add $ 4 trillion to the federal primary deficit over the next ten years to increase the expenses and growth in economics.
(Tagstotranslate) Scott Bessnt (T) USA Ministry of Finance Scott Bessnt
