💨 Abstract

Moody's Ratings downgraded the U.S. government's credit rating from Aaa to Aa1 due to rising debt. While acknowledging the U.S. economy's strengths, Moody’s expects deficits to widen to nearly 9% of GDP by 2035. The rating agency cited issues like increasing interest payments on debt and rising entitlement spending. Political gridlock, with Republicans opposing tax increases and Democrats reluctant to cut spending, has hindered efforts to address the deficit.

Courtesy: wtop.com