HomeTop U.S. NewsMoody's Lowers U.S. Credit Rating to Negative

Moody’s Lowers U.S. Credit Rating to Negative

Ratings agency Moody’s decided to lower its outlook on the U.S. credit rating from “stable” to “negative” as federal spending contributes to a larger fiscal deficit. A rise in government spending rocked investors’ confidence, leading to a government bond selloff that took their prices to their lowest level in 16 years.

“It is hard to disagree with the rationale, with no reasonable expectation for fiscal consolidation any time soon,” Christopher Hodge, chief economist for the U.S. at Natixis, said of Moody’s decision. Hodge added that as interest rates continue to rise, they will pile up the government’s debt.

Moody’s is the last of the three major rating agencies to downgrade its credit rating for the U.S. government. Fitch lowered its rating from triple-A to AA+ in August, while S&P’s AA+ rating has stood since 2011.

Chemical Giant DuPont Will Split in 3 Companies, Replace CEO Ed Breen

Chemical giant DuPont is heading towards some major changes. The company announced on Wednesday that it will be splitting into three separate companies while...

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications...

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of...