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.

Warren Buffett to Step Down as Berkshire Hathaway CEO at the End of 2025

Warren Buffett is ready to step down as the CEO of multinational conglomerate Berkshire Hathaway. Buffet announced his decision while speaking at the company’s...

Microsoft Stock Soars on Better-Than-Expected Q3 Earnings

Microsoft reported better-than-expected third-quarter earnings on Wednesday, which caused the company's stock to soar by more than 8% in after-hours trading. Microsoft reported $3.46 in...

Gold Continues to Drop From Record Highs, Dollar Ends Its Slide

After reaching fresh record highs at the beginning of last week, gold has been in the midst of a continuous drop. Meanwhile, the U.S....