Moody's Downgrades US Credit Ratings. Bessent: Biden's Blame

US Treasury Secretary Scott Bessent said on Sunday that he had little faith in Moody's, which downgraded the United States' credit rating. The finance minister also said that retailer Walmart would shoulder some of the costs of the tariffs.

Ratings agency Moody's on Friday cut the U.S. government's top credit rating, citing the failure of successive administrations to stem rising debt.

"I don't have much faith in a Moody's downgrade," he told CNN, calling it a "lagging" indicator. He also said he believes the credit downgrade is related to spending policies pursued by former President Joe Biden's administration.

"We did not get to this point in the last 100 days," the minister said. "This is about the Biden administration and the spending that we have seen over the last four years and that we have inherited," he added. He assured that the Trump administration is determined to cut spending and bring about economic growth.

House Republicans failed to advance a package of tax cuts and spending cuts through the House Budget Committee on Friday. House Speaker Mike Johnson said work on the package would continue. The committee is scheduled to reconvene on Sunday evening. Bessent stressed in television interviews on Sunday that the bill would help boost economic growth, but some experts said it would increase the national debt.

The minister also commented on NBC News on Sunday on Walmart's decision to raise prices due to the tariffs announced by the US president. He said he spoke with Walmart CEO Doug McMillon, who told him the company would absorb some of the costs resulting from the tariffs. Bessent denied that he was pressuring Walmart.

Trump himself wrote on social media that Walmart should shoulder the costs of the tariffs, rather than blame the tariffs for the price hike. “I will be watching (you), and so will your consumers!” he warned. The chain responded that it has “always worked to keep prices as low as possible and will continue to do so.”

Commenting on the tariffs, Bessent said that "with a few exceptions, countries are putting forward very good proposals (to the US). He announced that countries that do not "negotiate in good faith" will be subject to tariffs at the level announced by Trump in early April. He did not rule out that the US may apply tariffs to entire regions, rather than individual countries. In an interview with CNN, he admitted that Washington is mainly focused on agreements with 18 important US trading partners. (PAP)

Sun/ fit/

arch.