Wed May 21 11:15:56 UTC 2025: **Summary:**
Moody’s downgraded the United States’ credit rating from AAA, citing the nation’s growing debt (reaching almost 120% of GDP) and increasing debt service costs. This makes Moody’s the final of the major credit rating agencies to remove the US’s perfect rating. Concerns are amplified by President Trump’s proposed tax cuts, which critics fear will significantly increase the national debt.
**News Article:**
**Moody’s Downgrades US Credit Rating, Cites Ballooning Debt**
NEW YORK – In a move that signals growing concern over the financial health of the world’s largest economy, Moody’s Investors Service has downgraded the United States’ credit rating, stripping the nation of its long-held AAA status. Moody’s becomes the last of the “Big Three” credit rating agencies to take this step, ending the US’s reign as a borrower with a pristine reputation.
The downgrade stems from concerns over the rapidly escalating national debt, which currently stands at a staggering $36 trillion – nearly 120% of the nation’s Gross Domestic Product (GDP). Moody’s also pointed to the rising costs associated with servicing this growing debt as a key factor in its decision.
“The downgrade reflects the persistent rise in the US debt burden and the increasing strain it places on the economy,” stated a Moody’s spokesperson.
Adding to the unease, President Donald Trump is advocating for a sweeping tax cut package, dubbed the “one big, beautiful bill.” Critics argue that these cuts could add trillions more to the already significant deficit, further exacerbating the nation’s financial challenges.
The downgrade raises questions about the future of US borrowing costs and could potentially impact investor confidence in the stability of the US economy. Economists are now closely watching how the market will react to this shift in the nation’s credit standing.
First Piper 