United States Lose Maximum Loan Salvency Eligibility | The economy

The United States is no longer a Salvency model. The world’s first economy lost the maximum credit rating by three major specialized agencies. Standard & Poors withdrew AAA in 2011; Fitch did in 2023 and, from this Friday, Moody’s would not give him the best. A high public deficit and unstoppable loan path They punish the American Treasury Debt Note, during which its president Donald Trump’s economic and commercial political clutter questioned. Moody’s report includes some evening instructions Trump’s power flow.

The Moody’s reduced the long -term issuer rating and the United States’s extraordinary senior qualification to the AA1 and constantly converted to a negative attitude. “Reducing one stage of our 21 levels, over a decade, public debt and interest ratios reflects significantly higher than other sovereign officers with similar qualifications.” The agency indicates a statement released this Friday.

Low credit rating investors require high interest rates due to debt. The first time the maximum credit rating has influenced the damage markets, but because the US financial problems are well known, we should see what the answer is.

Agency analysts believe that a series of administration and the United States Congress failed to invest in large annual tax deficits and investment of interest costs.

“We do not believe that the current financial proposals that are currently being studied can lead to a significant reduction of mandatory costs and errors over the years”. “Over the next decade, we hope to increase the cost of social interests, but public income is practically stable. In turn, Excessive and continuous financial deficits increase the burden of debt and government interests. US economic results are likely to decline in their own history and compared to other qualified sovereign authorities, ”the statement explains.

According to Moody’s, a constant perspective that reflects new qualified balanced losses. “The United States maintains unusual credit strength such as the size, elasticity and consciousness of its economy US Dollar as World Reserve Currency. In addition, we hope the United States will continue with a long career of the most effective monetary policy set by the Independent Federal Reserve, although the last months are classified with somewhat political uncertainty, ”he said.

Trump has questioned the Central Bank Independence and Its pressures are negative for reducing types. Uncertainty of American economic policy is also the president’s responsibility, the economy that is jealous of the world, the economy he has inherited from Joe Biden.

Authorized derivative

Trusts of Moody, without saying that words American democracy has resisted Trump’s power flow. “The stable perspective also takes into account the institutional qualities, including the constitutional division of powers between the three branches of the government, which contributes to the influence of policies over time and is not relatively sensitive to short -term events. Even though this organizational mechanisms can sometimes be tested, we hope that they are Solid and resistant.”

In fact, in a rare mention, he clearly points out that he believes that he wants to maintain the law rule, and that it is no longer occurring. “We think that the qualifications of the United States and the rule of the United States are not significantly impaired, and at times they have been witnessed, especially, in particular, we think that the long -term controls and the respect of the law between the three forces in the state and the law are usually, in general, without changes.”

In addition, it will start a notice to navigators. If the efficiency of the qualification “policies or the strength of the institutions declines, the sovereign issuer’s credit profile may be reduced to significantly weakening. “This is what happened during the political unrealistic time of Trump,” whether it has been capable of declining in the medium season or with the significant and permanent exit of the US dollar’s international investors’ ability to resist the economy against the disturbances. “

There are financial foundations for reduction. Federal debt of the United States has increased significantly due to continuous financial deficits due to the increase in cost and tax deductions for over a decade. As the deficit and debt rise and interest rates have increased, public loan interest payments have increased significantly.

The decision will be produced on the same day when the House of Representatives Commission has blocked the process of processing the economic legislation encouraged by Donald Trump, which will cost tax sales at the expense of a strong growth in the public deficit. Congress members of the Hard Republican Wing voted against the project.

Moody’s has an OTHES Hanu that the law of 2017’s financial cuts and employment has been expanded, which is now one of the terms that have been stopped, and in the next decade it warns that it will include four billion dollars to the federal financial deficit (excluding interest payments).

“As a result, we hope that the federal deficit in 2035 will be expanded to nearly 9% GDP, compared to 6.4% in 2024, the increase in interest payments, the cost of spending, and the cost of spending.

According to the agency, compared to 18% in 2024 and 9% in 2021, federal interest payments are likely to be realized in 2035 in 2035. The burden of the entire government administration, which is considered by the federal, state and local loan in 2024, has perceived 12% income, compared to 1.6% of the sovereign authorities with the AAA rating.

“Although we recognize the important economic and economic strength of the United States, we believe that these will no longer face the decrease in financial indicators”.

The Moody’s also points out the strength of the US Economy, which combines the history of a large scale, high average income, strong growth capacity and the productivity and growth of GDP. “We do not expect the long -term growth of the United States to be significantly affected by the GDP growth as the economy is in line with the highest tariffs,” he said.

The agency emphasizes it The situation of the US Dollar as the dominant reserve currency In the world it provides important credit support. It helps the government to finance the high -annual financial flaws and refinance its high loan to moderate and relatively Able. “We hope that the US dollar Future will be the dominant reserve currency worldwide in the future, although the central banks around the world have been different in the last twenty years,” said Moody’s.