The last rating agency that awarded it, Moody'sOn Friday, May 16, the agency downgraded its rating by one notch, from Aaa to Aa1, and changed its outlook from negative to stable. The agency based its decision on the unsustainable trajectory of the debt and interest rates "which are significantly higher than those of sovereigns with similar ratings."
None of the various administrations has managed to reduce the high fiscal deficit, exceeding 7% of GDP, and the unsustainable trajectory of public debt. In 2025, US federal debt will be around 124% of GDP, and annual interest costs are expected to exceed $XNUMX trillion in the coming years, exceeding both defense and energy spending. Medicare if the trend continues.
In this sense, the Trump administration has received its first setback in the House of Representatives, where a key committee rejected the tax and spending bill. It was hardline Republicans themselves who opposed the president's team's proposal and demanded deeper cuts in public spending on Medicare and other government programs. The setback in the vote highlights the existing divisions within the Republican Party, which could delay the president's policy agenda. Trump.
Source: CESCE
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