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Fiscal Strength

All articles tagged with #fiscal strength

economy2 years ago•1 min saved

Moody's Downgrades U.S. Outlook Due to Rising Rates and Deficits

Moody's Investors Service has downgraded the ratings outlook on the United States' government from stable to negative, citing rising risks to the nation's fiscal strength and political polarization. The agency expects the US' fiscal deficits to remain large, significantly weakening debt affordability. The ongoing brinkmanship in Washington raises concerns that successive governments will struggle to reach consensus on a fiscal plan. However, Moody's maintains the US' Aaa rating, expecting the country to retain its exceptional economic strength. The move comes as Congress faces the threat of a government shutdown, with lawmakers at odds over a funding bill.

via CNBC|

#economy #fiscal-strength #government-shutdown

economy3 years ago•2 min saved

Moody's Warns US Government Shutdown Poses Credit Risk

Moody's has warned that a US government shutdown would be "credit negative" for the country, highlighting the weakness of its institutional and governance strength compared to other top-rated governments. While the economic impact would likely be short-lived, the shutdown would disrupt government services, furlough federal workers, and suspend the publication of major economic data. Moody's emphasized that a prolonged shutdown would have a more negative impact on the broader economy and financial markets. The agency also noted that political polarization is impacting fiscal decisions and warned that weaker fiscal policymaking could put pressure on the US credit rating or outlook.

via Reuters|

#credit-assessment #economic-impact #economy