Moody’s downgraded the U.S. dollar from stable to negative on Friday due to the county’s debt and political instability. It certainly isn’t a good look to continuously hit these debt ceilings.
The U.S. still has a AAA rating but Moody’s is signaling that this is on shaky ground.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the U.S. fiscal deficits will remain very large, significantly weaking debt affordability,” the statement said.
Speaking of debt ceilings, the next one happens Friday, November 17 if Congress doesn’t pass another spending bill. It feels like Groundhog Day, doesn’t it?