“Moody's” downgraded its outlook for the U.S. credit rating to "negative" from "stable," revealing large fiscal deficits and low debt sustainability, a move that drew criticism from President Joe Biden's administration.
Fitch downgraded the sovereign rating this year, a move that came after months of bitter political debate over the U.S. debt ceiling. Federal spending and political polarization have been growing concerns for investors, contributing to a sell-off that pushed U.S. government bond prices to 16-year lows. Moody's said continued political polarization in Congress increases the risk that lawmakers will not be able to reach consensus on a fiscal plan to slow the decline in debt sustainability.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
