By Paul Wiseman, Associated Press
Washington (AP) – Moody’s notes stripped the US government of its higher credit note on Friday, citing non -compliance with successive governments to stop a growing debt wave.
Moody has reduced a standard gold AAA in AA1, but said that the United States “retains exceptional credit forces such as the size, resilience and dynamism of its economy and the role of the US dollar as a global reserve currency”.
Moody’s is the last of the three main rating agencies to reduce the credit of the federal government. The Federal Standard & Poor debt lowered in 2011 and the fitch ratings followed in 2023.
In a press release, Moody’s said: “We expect federal deficits to widen, reaching almost 9% (the American economy) by 2035, against 6.4% in 2024, mainly motivated by increased interest payments on debt, the increase in law expenditure and the relatively low revenue generation.”
The extension of President Donald Trump’s tax reductions, a priority of the congress controlled by the Republican, said Moody’s, would add 4 dollars of dollars during the next decade to the federal primary deficit (which does not include payments of interest).
A blocked political system has not been able to fight the huge deficits in the United States. Republicans reject tax increases and Democrats hesitate to reduce expenses.
Friday, the Républicains of the Chamber failed to push a large set of tax mitigation and to reduce expenses through the budget committee. A small group of right -wing republican legislators, insisting on higher cups in Medicaid and the green tax lightening of President Joe Biden, joined all the Democrats to oppose it.
Originally published:
California Daily Newspapers
