America’s fiscal strength deteriorating amid growing deficits, Moody’s warns
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The US government’s fiscal power is deteriorating as a larger trend Budget deficits And the ongoing debt continues, Moody’s Rates is mentioned in the report issued on Tuesday.
Moody’s says America’s fiscal health is deteriorated when she lowered the country’s AAA credit rating in November 2023. Debt Restriction BrinksManship:Meanwhile, the standard and poor did after the border crisis of the 2011 debt, which stimulated the partial government.
The rating agency is the last of the recent rating agencies to keep the US sovereign debt to its high level, although it has had a more pessimistic point of view in 2023, in a broader national debt theater and higher interest rates.
“Even a very positive and low-likelihood economic and financial scenario, access to debt remains materialistic than the AAA for other estimated and highly appreciated sovereigns,” Moody’s wrote.
In the first 5 months of the fiscal year, the federal budget deficit hits $ 1,1t
Moody’s warned that the US fiscal position is deteriorating on the expansion of deficiency and growing national debt. (Fox Business / Photo illustration / FOX News)
Strong projects that the ratio of public debt Gross domestic products The meters of economists by economists by economists will rise by economists in 2025 by about 100% to about 1000%.
The availability of debt is expected to worsen at a faster pace, interest payments are recorded by 30% of revenue by 2035 dramatically by 9% of 2021 dramatic growth.
The company explained that the availability of low debt in the United States means that the central roles of the dollar and treasury market in global financial markets have become more important to support the ranking of the AAA.
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However, changes in fiscal policy complicate this prospect, as the trump card and Republicans of Congress are pursuing a tax reduction package that will be distributed. Cuts of 2017 tax end and could expand the deficit further, if not compensated by a significant reduction of expenses.
“We see that the reduced prospects that these strengths will continue to compensate for the expansion of fiscal deficits and reduce access to debts,” Moody’s said.
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The company says that the large reductions of expenses will be difficult to implement biodiversity support, which would make up many republican and democratic politicians such as mandatory costs. Social Security and Medicare: unprotected.
Other cost cuts as provoked by them Elon Musk-Led The Government’s Efficiency Department (DOGE) has a small impact on the budget compared to compulsory expenditures and is probably not significantly short-term savings.
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In addition, President Donald Trump Tariff plans can bring negative economic consequences.
Although tariffs could temporarily increase income if high tariffs remain in a row over time, they probably hinder economic growthreverse their positive impact on income, said Moody’s.
Reuters contributed to this report.
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