Moody's Ratings Agency Withdraws US Triple A Rating, a Disavowal for Trump
On Friday, May 16, the United States lost its top rating from the American economic rating agency Moody's. This decision was motivated in part by the inability of the country's institutions to stem the growth of the public deficit and the lack of guarantees provided by the measures taken by the Trump administration to address it.
The rating agency Moody's downgraded the United States' rating to AA1 on Friday, May 16, permanently stripping it of its triple-A rating, which it had held since 1917.
The agency cited the country's continuing large public deficit as the reason for its decision, as well as the failure of US institutions and Congress to "agree on measures to reverse the trend of large annual budget deficits and rising interest costs."
The New York Times believes that "the downgrade, to one notch below the maximum AAA rating, amounts to a disavowal." for the Trump administration.
Especially since it comes at a time when “Republicans in Congress are trying to craft a massive tax and spending bill ,” the Wall Street Journal points out . “This bill would extend expiring tax cuts, introduce new ones, reduce spending on Medicaid and food aid, and strengthen border surveillance and national defense.” A text that did not seem to convince Moody's. The agency estimated that the spending cuts sought by the Trump administration would not be enough to compensate
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