From Investing.com: 2025-05-19 05:04:00

On Friday, Moody’s downgraded the US credit rating to Aa1 (equivalent to AA+). This decision was based on the failure of US administrations and Congress to address large fiscal deficits and growing interest costs. Despite fears of dire consequences, the US, as a currency issuer, can stimulate the economy by printing money without the need to repay debt. The downgrade to AA+ will not impact banks or the use of US Treasuries as collateral in the financial system. Moody’s warns that persistent deficits may require a different approach to bond markets, affecting growth and inflation expectations. Bond prices are considered fair, with potential for accumulating more Treasuries.



Read more at Investing.com: Understanding the Real Impact of US Credit Rating Downgrade