Moody's downgrades US debt rating outlook to negative
For now, the agency has maintained its Aaa rating on US government debt. The US Treasury immediately voiced its disagreement with Moody's decision.
«The American economy remains strong, and Treasury securities are the world's preeminent safe and liquid asset,» Deputy Secretary of the Treasury Wally Adeyemo in a statement.
«The Biden Administration has demonstrated its commitment to fiscal sustainability, including through the more than $1 trillion in deficit reduction included in the June debt limit deal as well as President Biden's budget proposals that would reduce the deficit by nearly $2.5 trillion over the next decade.»
The US budget deficit, published last month for the 2023 fiscal year ending September 30, has widened to $1.7 trillion.
Due to interest rate hikes by the US central bank to curb inflation, the cost of debt for the United States has ballooned, with Washington paying $162 billion more for interest in the last fiscal year compared to 2022.
