Moody’s downgrades U.S. credit rating
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The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.
Dow Futures fell by more than 300 points early on Monday, meanwhile 30-year U.S. Treasury bond yields rose past 5%.
Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.
An economist explains why the recent credit rating downgrades for major U.S. banks might not carry a big impact.
Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.
Moody’s Ratings has joined Fitch Ratings and S&P Global Ratings as the last credit agencies to downgrade the U.S. economy, the world’s largest. The agency cited the country’s
Moody’s still has a perfect Aaa rating on Apple’s bonds. Yields for long-term Apple debt are higher than the 10-Year Treasury as well.
Changes to the country’s credit rating impact interest consumers pay on household debt like mortgages, car loans and credit cards