The Briefing Room
General Category => Economy/Business => Topic started by: rangerrebew on November 11, 2023, 03:06:40 pm
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Biden officials blame GOP 'extremism' for Moody's 'negative' credit outlook
by Jenny Goldsberry, Social Media Producer
November 10, 2023 07:56 PM
The Biden administration released statements Friday evening disagreeing with Moody's Investors Service changing the United States credit outlook to "negative."
Deputy Treasury Secretary Wally Adeyemo promised that President Joe Biden has proposals to cut the budget and reduce the national deficit as a result. Moody's claimed to have changed the outlook from "stable" to "negative" because fiscal deficits remained large, which is causing debt affordability to weaken significantly.
“While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the shift to a negative outlook. The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset," Adeyemo said in a statement. "The Biden Administration has demonstrated its commitment to fiscal sustainability, including through the more than $1 trillion in deficit reduction included in the June debt limit deal as well as President Biden’s budget proposals that would reduce the deficit by nearly $2.5 trillion over the next decade.”
https://www.washingtonexaminer.com/news/white-house/biden-officials-gop-dysfunction-moodys-negative-credit
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Have democrats kicked the tried and true "vast right wing conspiracy" schtick to the side? :whistle:
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Moody's downgrades U.S. outlook to 'negative'
The Biden administration rejected the Moody's downgrade, with Treasury officials insisting the U.S. economy is thriving.
By Ben Whedon
Published: November 10, 2023 7:04pm
Moody's Investor Service on Friday downgraded its outlook for the U.S. to "negative" from "stable" while maintaining the nation's AAA credit rating.
"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody's expects that the US' fiscal deficits will remain very large, significantly weakening debt affordability," the service announced. "Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability."
Moody's asserted that the nation's "exceptional economic strength" and potential for positive growth could at least slow the mounting cost of maintaining its debt. It further insisted the maintained prominence of the dollar in global markets would mitigate risks.
"While the adjustment of the US economy and financial sector to higher-for-longer interest rates is underway, policymakers have facilitated the transition through transparent and effective policy," the service added. "Finally, the unique and central roles of the US dollar and Treasury bond market in the global financial system provide extraordinary funding capacity and significantly reduce the risk of a sudden spiraling of funding costs, which is particularly relevant in the context of high debt levels and weakening debt affordability."
While Moody's declined to downgrade the U.S. credit rating, other firms have already done so. Fitch Ratings, in August, assigned the U.S. a "stable" outlook rating, but dropped the nation's credit from AAA to AA+. S&P Global made the same downgrade in 2011.
more
https://justthenews.com/nation/economy/moodys-downgrades-us-outlook-negative
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Moody's downgrades U.S. outlook to 'negative'
The Biden administration rejected the Moody's downgrade, with Treasury officials insisting the U.S. economy is thriving.
more
https://justthenews.com/nation/economy/moodys-downgrades-us-outlook-negative
Investors say otherwise
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From the article…
"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody's expects that the US' fiscal deficits will remain very large, significantly weakening debt affordability," the service announced.
Take note, MAGAs. This is the real world. This is the world of Obama/Trump/Biden out of control spending.
This is why we’ve got to control deficits and spending.
You claim we want to send grandma to the pet food aisle because we want entitlement Reform.? This will send her to the pet food aisle