By Matt Wirz
Dow Jones-The Customs risk could endanger the top credit of the United States. The rating agency Moody’s Investors Service has published new forecasts in which a higher deficit and higher interest rates are expected for the USA. Both could undermine the country’s skills in the debt service.
A gradation would be a politically charged decision. Neither at S&P nor at FITCH have the USA nor the top credit “AAA”, but stand on “AA+”.
The slower growth by tariffs, paired with larger tax cuts, should bloze over a third to 8.5 percent of gross domestic product over the next ten years, Moody’s. The agency had reduced its outlook for the rating of the United States in 2023, but has so far refrained from grading due to the strength of the US dollar and the treasury.
The change in the forecasts has now been signaled that this position is waning. “We see dwindling prospects that these strengths can continue to compensate for the extensive deficit and the declining operation of the debts,” said Moody’s.
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(End) Dow Jones Newswires
March 27, 2025 11:54 ET (15:54 GMT)