Moody, America
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Investors sold stocks and bonds after Moody’s downgraded the U.S. credit rating, potentially complicating negotiations around Republicans’ tax plan.
Investors sold U.S. government bonds and the dollar on Monday amid concerns about the U.S. fiscal picture. Stocks edged higher.
Moody’s gave the U.S. a negative outlook—but markets didn’t flinch. This isn’t about default. It’s about trust, and why credibility erosion is the real risk.
The move came as Republicans seek to approve a large package of tax cuts, spending hikes and safety-net reductions which could add trillions of dollars in U.S. debt.
After the United States lost its last perfect credit rating on Friday, Republicans and Democrats responded by pointing fingers at each other.