Moody's Downgrades U.S. Credit Rating Amid Rising Debt Concerns

Moody's Ratings downgraded the U.S. credit rating from Aaa to Aa1, citing increased federal debt. Concerns include widening deficits, driven by increased interest payments and entitlement spending. Challenges in political consensus hinder deficit solutions, with Republicans opposing tax increases and Democrats reluctant to cut spending.

Moody's Ratings downgraded the United States government's credit rating from Aaa to Aa1, highlighting the country's escalating debt and political gridlock.

The downgrade, following previous actions by Standard & Poor's and Fitch Ratings, underscores concerns over rising federal deficits expected to reach nearly 9% of the economy by 2035.

Political divisions further complicate the issue. Republicans oppose tax hikes, and Democrats resist spending cuts, stalling measures needed to address the nation's budgetary concerns effectively.

(With inputs from agencies.)