Epoch Times logo
Al Jazeera logo
PBS NewsHour logo
13 articles
·1M

Moody's Downgrades U.S. Credit Rating, Citing Rising Debt and Political Gridlock

Moody's has downgraded the U.S. credit rating from Aaa to Aa1, highlighting increasing federal deficits and a failure to address rising debt.


Overview

A summary of the key points of this story verified across multiple sources.

Moody's Ratings downgraded the U.S. credit rating from Aaa to Aa1, citing repeated failures of successive administrations to manage rising debt and fiscal deficits. The agency forecasts federal deficits could reach 9% of GDP by 2035, increased largely by interest payments and entitlement spending. Despite this, Moody's states the U.S. retains strong credit strengths. This downgrade follows similar actions from major rating agencies in previous years. Political gridlock remains a barrier as House Republicans failed to pass significant tax cuts and spending reforms, with a lack of consensus on addressing the growing deficit challenges.

Content generated by AI—learn more or report issue.

Pano Newsletter

Get both sides in 5 minutes with our daily newsletter.

Analysis

Compare how each side frames the story — including which facts they emphasize or leave out.

The downgrade signals a potential increase in interest rates and the financial burden on Americans already affected by inflation and tariffs, indicating a concerning trend for the nation's fiscal health.

The downgrade is attributed to systemic issues, such as political dysfunction, that have led to inadequate responses to rising government debt and entitlement spending. The current political gridlock complicates finding solutions to these challenges.

The implications of this downgrade could lead to higher mortgage rates and borrowing costs impacting everyday Americans, highlighting the need for more prudent fiscal policy.

Articles (13)

Compare how different news outlets are covering this story.

LeftCenterRight
PBS NewsHour
Al Jazeera
CNN
NBC News
USA TODAY
ABC News
CBS News
Fortune
Associated Press
Fox Business
Boston Herald
Newsmax
Epoch Times
Moody’s strips US government of top credit rating
Al JazeeraAl Jazeera·1M·
Leans Left
This outlet slightly leans left.

No highlight available for this article.

Moody's downgrades US credit rating, citing rising debt
USA TODAYUSA TODAY·1M·
Center
This outlet is balanced or reflects centrist views.

No highlight available for this article.

Moody's strips U.S. government of top credit rating
ABC NewsABC News·1M·
Center
This outlet is balanced or reflects centrist views.

No highlight available for this article.

Moody's downgrades US credit rating over rising debt
Fox BusinessFox Business·1M·
Leans Right
This outlet slightly leans right.

No highlight available for this article.

Moody's Downgrades US Credit Rating From Elite 'AAA'
NewsmaxNewsmax·1M·
Right
This outlet favors right-wing views.

No highlight available for this article.

FAQ

A list of follow-up questions readers often ask about this story.

History

A summary of how this story has evolved over the last 24 hours.

  • 1M
    ABC News logo
    CBS News logo
    Boston Herald logo
    9 articles