US Credit Rating Downgraded: What It Means for You
Moody's Ratings has downgraded the US government's credit rating from Aaa to Aa1, marking a significant shift in its fiscal outlook. This decision reflects the growing federal debt and rising interest payments, which have surged due to continuous fiscal deficits over the years. Despite the downgrade, Moody’s recognizes the US's economic strengths, including its vast economy and the dollar's role as a global reserve currency. However, it warns of larger deficits in the coming years, predicting that federal deficits could reach nearly 9% of GDP by 2035. The future growth of the US economy may slow down, but it is unlikely to face significant long-term effects.
