{"id":7781,"date":"2025-05-19T19:46:18","date_gmt":"2025-05-19T11:46:18","guid":{"rendered":"https:\/\/goutanddesign.com\/wpress\/?p=7781"},"modified":"2025-05-19T19:46:18","modified_gmt":"2025-05-19T11:46:18","slug":"us-credit-rating-downgraded-for-first-time-since-1919","status":"publish","type":"post","link":"https:\/\/goutanddesign.com\/wpress\/2025\/05\/us-credit-rating-downgraded-for-first-time-since-1919\/","title":{"rendered":"US Credit Rating Downgraded for First Time Since 1919"},"content":{"rendered":"Reading Time : <\/span> 2<\/span> minutes<\/span><\/span>

Moody\u2019s has officially downgraded the United States\u2019 credit rating from AAA to Aa1, the first time since 1919 that the country holds no top-tier rating from any of the big three agencies. The downgrade comes amid concerns over the ballooning federal deficit and the unsustainable rise in interest payments. Last year alone, the US paid more than $1.1 trillion just in interest, a figure that surpasses the entire Pentagon budget and raises serious questions about long-term fiscal discipline.<\/strong><\/p>\n

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The decision has generated strong reactions from both political and financial circles. Treasury Secretary Scott Bessent dismissed the move as outdated and irrelevant, calling it a lagging indicator. However, the markets didn\u2019t shrug it off. US stock futures slipped, and long-term Treasury yields spiked to 5%, a clear signal of investor discomfort. Analysts believe that a downgrade like this, even if symbolic, influences global perceptions of American financial stability.<\/p>\n

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This development couldn\u2019t come at a more volatile time. Lawmakers are currently clashing over a proposed tax bill expected to inflate the deficit by another $4.2 trillion over the next ten years. Moody\u2019s statement highlights that the country may soon need to borrow more just to pay the interest on existing debt. While Washington debates policy, the reality of rising debt servicing costs continues to weigh on the economy\u2019s trajectory and global standing.<\/p>\n

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Despite the downgrade, Moody\u2019s maintains a stable outlook for the US, citing strong underlying economic fundamentals and the dollar\u2019s continued dominance as the global reserve currency. Still, the downgrade is a red flag that can\u2019t be ignored. It underlines deep structural fiscal issues that neither political rhetoric nor market optimism can fix overnight. The world is watching how the US handles its growing debt\u2014and whether faith in its creditworthiness can be restored.<\/p>\n

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\"B\u00e9n\u00e9dicte
B\u00e9n\u00e9dicte Lin \u2013 Brussels, Paris, London, Seoul, Bangkok, Tokyo, New York, Taipei, Hong Kong<\/figcaption><\/figure>\n

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#USCreditRating #Moodys #DebtCrisis #Markets #Finance #AAA #Economy #Politics #Dollar<\/p>\n

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Reading Time : <\/span> 2<\/span> minutes<\/span><\/span> Moody\u2019s downgraded the US credit rating from AAA to Aa1 due to rising debt and interest burdens. It\u2019s a historic shift with global impact, sparking market jitters and political pushback.<\/p>\n","protected":false},"author":2,"featured_media":7784,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[374,194],"tags":[397,25,19,165,228,4,93,94,111],"class_list":["post-7781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-finance","tag-397","tag-american","tag-benedicte","tag-finance","tag-geopolitics","tag-gout-design","tag-investments","tag-money","tag-usa"],"_links":{"self":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/7781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/comments?post=7781"}],"version-history":[{"count":1,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/7781\/revisions"}],"predecessor-version":[{"id":7786,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/posts\/7781\/revisions\/7786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/media\/7784"}],"wp:attachment":[{"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/media?parent=7781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/categories?post=7781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goutanddesign.com\/wpress\/wp-json\/wp\/v2\/tags?post=7781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}