Washington – Moody’s qualifications stripped the United States government of their main credit qualification on Friday, citing successive governments not to stop a growing wave of debts.
Moody has dropped the qualification of a standard AAA of gold to AA1, but said that the United States “retains exceptional credit strengths, such as the size, resistance and dynamism of its economy and the role of the US dollar as a global reserve currency.”
Moody’s is the last of the three main qualification agencies to reduce federal government credit. Standard AND Poor’s reduced the federal debt in 2011 and Fitch Ratings continued in 2023.
In a statement, Moody’s said: “We hope that federal deficits will be extended, reaching almost 9% of (the economy of the United States) by 2035, compared to 6.4% in 2024, mainly driven by the increase in interest payments on debt, increased rights spending and the generation of relatively low income.”
Extending the tax cuts of President Donald Trump in 2017, a priority of the congress controlled by the Republicans, said Moody’s, would add $ 4 billion during the next decade to the federal primary deficit (which does not include interest payments).
A network blocked political system has not been able to address the huge deficits of the United States. Republicans reject tax increases, and Democrats are reluctant to reduce spending.
On Friday, the Republicans of the House of Representatives failed to promote a large package of tax exemptions and expense cuts through the Budget Committee. A small group of right -wing Republican legislators, insisting on more pronounced cuts to Medicaid and the exemptions of green energy taxes of President Joe Biden, joined all Democrats to oppose.
