Moody’s Ratings stated US federal deficits could reach 9% by 2035, up from 6.4% in 2024|Mattia Panciroli|CC BY-NC-ND 2.0
Moody’s lowered America’s credit rating on Friday, from the highest investment-grade position, Aaa, to Aa1, citing rising federal debt “due to continuous fiscal deficits.”
It is the last of the three major rating agencies to downgrade the US government’s credit. Standard & Poor’s did so in 2011, and Fitch Ratings in 2023.
Moody’s also stated that US federal deficits could reach 9% by 2035, up from 6.4% in 2024.
The federal budget deficit is almost $2 trillion a year, over 6% of the US’s gross domestic product (GDP), according to CNBC.