Moody's downgrades US government debt outlook to negative

Higher for longer rates

clock • 2 min read

Credit ratings agency Moody’s has downgraded its outlook for US government debt from stable to negative, as interest rates remain higher for longer and a government shutdown looms.

"The key driver of the outlook change to negative is Moody's assessment that the downside risks to the US' fiscal strength have increased and may no longer be fully offset by the sovereign's unique credit strengths," the agency said. While Moody's said it expects the country to "retain its exceptional economic strength" and maintained its Aaa rating, it raised the prospect that this could be cut. US economy 'finally showing signs of cracks' with lacklustre October jobs numbers The agency pointed to the "sharp rise" in US Treasury bond yields, which is increasing pressure on US debt...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Jerome Powell: Fed united in cutting rates this year
US

Jerome Powell: Fed united in cutting rates this year

Timing brings risks

Eve Maddock-Jones
clock 05 February 2024 • 2 min read
T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations
US

T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations

Soft landing prospects

Ritu Vohora
clock 01 February 2024 • 4 min read
US inflation falls to 3.1% in November
US

US inflation falls to 3.1% in November

In line with expectations

Elliot Gulliver-Needham
clock 12 December 2023 • 1 min read
Trustpilot