The United States and Moody’s Investors Service disagree on Moody’s decision to shift the country’s rating outlook from stable to negative. US Deputy Treasury Secretary Wally Adeyemo commented on the matter, as reported by CNBC, stressing that the administration does not share the downgrade rationale.
According to Adeyemo, the American economy continues to show resilience. He argued that the reassessment by analysts does not justify a downward revision in the outlook and urged markets to consider the broader context of the country’s fundamentals.
A US Treasury spokesperson echoed this stance, noting that the forecasts for the nation’s ratings should reflect solid domestic performance rather than a negative drift based on short-term estimates.
Moody’s Investors Service published a notice on November 10 indicating a shift in the US rating outlook from stable to negative. The agency attributed the move to concerns about diminished financial stability and increasing vulnerabilities in the economy, even as other indicators remained robust in certain sectors.
Toward the end of October, remarks from Treasury Secretary Janet Yellen and White House Budget Director Shalanda Young drew attention to the fiscal challenge facing the federal government. They jointly highlighted a rise in the budget deficit for fiscal year 2023, reporting that it had expanded by approximately 320 billion dollars, reaching around 1.7 trillion dollars in total.
Previously, the Treasury had warned about the trajectory of the national debt, noting that the debt level was approaching historic highs and could influence long-term fiscal stability and borrowing costs.