The Trump administration seems to be infuriated by Moody’s move to downgrade America’s credit rating from AAA to AA1 and the White House has labelled Moody’s economists as anti-Trump.
US President Donald Trump’s tariff is causing a global trade war in the world and seeing its impact, Trump himself has changed his tone. On the other hand, another bad news has come for America. In fact, global rating agency Moody’s has reduced the US credit rating from AAA to AA1, this is a big blow for the world’s largest economy. America’s irritation is also visible after the agency reduced the rating.
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Shock to US amid Trump’s tariff war
On the one hand, Donald Trump was seen moving ahead with the same tariff giving the slogan of America First, while on the other hand, the mountain of debt on the World’s Top Economy kept increasing, which was almost ignored by Trump. Yes, the debt burden on America is continuously increasing and various governments and the Congress are failing to control it, it is not us but rating agency Moody’s which has made such a claim in its report. It has been said that due to rising debt and interest payment, the US credit rating has been cut by one notch from AAA to AA1, which exposes the government’s failure to control the rising debt on America.
America has a debt of more than $36 trillion
According to Reuters, the magnitude of America’s debt burden can be easily gauged by looking at its latest figures, which have reached $36.2 trillion. According to Moody’s Rating, even in this situation, Donald Trump is putting pressure on the Republican-controlled Congress to pass a bill that extends the tax cuts implemented by Trump in 2017. According to the rating agency, if this is extended further, then there could be a massive increase of $4 trillion in America’s debt in the next decade. On the other hand, the Democrats are opposing it.
‘This cut is a warning for the Trump administration…’
Regarding the cut in America’s credit rating by Moody’s, Senate Democratic Leader Chuck Schumer said in a statement that this cut by Moody’s should be a warning to Trump and Congressional Republicans to stop their futile attempt at a tax cut to reduce the deficit.
Brian Bethune, a professor of economics at Boston College, said the downgrade was a major warning to Republicans and they would have to come up with a credible budget agreement that would bring the deficit down. However, Stephen Moore, a former senior economic adviser to Donald Trump and economist at the Heritage Foundation, called the rating agency’s move “outrageous” and said “if the US-backed government bond is not an AAA asset, then what is it?”
Questions are being raised on Moody’s
This change in America’s credit rating agency by the global rating agency has created a stir in the White House as well and Moody’s move has been completely rejected from there. The White House adopted an aggressive stance towards the rating agency and communications director Steven Cheung while expressing his reaction on the downgrade of credit rating through a social media post, strongly criticized Moody’s economist Mark Zandi and called him a political opponent of US President Donald Trump. Cheung said that nobody takes his analysis seriously, he has been proven wrong time and again.
