Moodys downgraded US credit rating
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Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.
The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.
Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.
Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.
The S&P 500 was 0.9 percent lower in early trading after Moody’s Ratings became the last of the three major credit-rating agencies to say the US federal government no longer deserves a top-tier “Aaa” rating.
Moody’s downgrades the U.S. credit rating for the first time since 1919, citing rising debt. Crypto markets react with Bitcoin and Ethereum slipping as investors weigh broader economic risks.